Accounting for operating environments in measuring water utilities’ managerial efficiency

Andres Picazo-Tadeo, Francisco González-Gómez and Francisco J. Sáez-Fernández

The Service Industries Journal, 2006, vol. 29, issue 6, 761-773

Abstract: In this paper adjusted input-specific scores of technical efficiency are computed for a sample of Spanish water utilities. Performance is adjusted by netting out efficiency scores from the effect of operating environments and statistical noise. The results show that computation of adjusted efficiency scores at the input level manifestly improves the assessment of utilities’ performance in our sample of water utilities. In addition, several environmental variables capable of affecting input-specific technical management are discovered, ownership or demand seasonality among them. Finally, distributions of conventional and adjusted scores of technical performance are found to be statistically different for some inputs.

Date: 2006
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Citations: View citations in EconPapers (13)

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Persistent link: https://EconPapers.repec.org/RePEc:taf:servic:v:29:y:2006:i:6:p:761-773

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DOI: 10.1080/02642060802190300

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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