TECHNICAL EFFICIENCY OF RURAL WATER UTILITIES

Technical efficiency of rural water utilities is determined using frontier production functions. An indirect production function is developed to model the two-step production process of a local government-controlled firm. Data from 26 rural Nevada water utilities are used to estimate inefficiency in terms of firm-specific variables. A multistep estimation procedure is used instead of single-step maximum likelihood estimation. Model selection tests are used to choose the best model. Privately owned utilities are most efficient; self-governing water districts are the least efficient. Municipal governments operate the most and least efficient utilities.


Issue Date:
1995-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/30764
Published in:
Journal of Agricultural and Resource Economics, Volume 20, Number 2
Page range:
373-391
Total Pages:
19




 Record created 2017-04-01, last modified 2017-08-24

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