RT info:eu-repo/semantics/article
T1 Cost and quality of service performance in the Chilean water industry: A comparison of stochastic approaches
A1 Maziotis, Alexandros
A1 Sala Garrido, Ramón
A1 Mocholi Arce, Manuel
A1 Molinos Senante, María
K1 Procesos estocásticos
K1 Agua Industria
K1 Cost efficiency
K1 Quality of service
K1 Water utilities
K1 Eficiencia de costo
K1 Calidad de servicio
K1 Servicios de agua
K1 3305.15 Ingeniería Hidráulica
K1 5302.02 Modelos Econométricos
AB The evaluation of efficiency can be of great value to water companies and regulators to adopt policies and design incentives to enhance performance. This study delves into the implications of employing distinct methodologies, namely the classical Stochastic Frontier Analysis (SFA), Bayesian SFA, and Stochastic non-parametric Envelopment of Data (StoNED), to evaluate cost and quality of service efficiency within the water industry. Chilean water companies reported average efficiencies of 0.623, 0.583, and 0.522 using the SFA, BSFA, and StoNED approaches, respectively. Furthermore, the SFA analysis suggested that the performance of water companies experienced a decline of −0.59% per year from 2010 to 2018. In contrast, the BSFA and StoNED estimations indicated an opposite trend, with annual performance improvements of 0.51% and 0.17% respectively, over the same period. These findings underscore the critical role of selecting appropriate methodologies when interpreting and comparing efficiency results for making informed long-term decisions.
PB Elsevier
SN 0954-349X
YR 2023
FD 2023
LK https://uvadoc.uva.es/handle/10324/61209
UL https://uvadoc.uva.es/handle/10324/61209
LA eng
NO Structural Change and Economic Dynamics, 2023, vol. 67, pages 211-219
NO Producción Científica
DS UVaDOC
RD 28-may-2024