@article{Maziotis:142950,
      recid = {142950},
      author = {Maziotis, Alexandros and Saal, David S. and Thanassoulis,  Emmanuel},
      title = {Output Quality and Sources of Profit Change in the English  and Welsh Water and Sewerage Companies},
      address = {2012-10},
      number = {824-2016-54705},
      series = {CCSD},
      pages = {42},
      year = {2012},
      abstract = {This paper investigates the determinants of profit change  over the period 1991-2008 for the Water and Sewerage  Companies (WaSCs) in the English and Welsh water and  sewerage industry. We firstly apply an input oriented  profit decomposition approach following the approach of De  Witte & Saal (2010). Then, we make allowances for  differences in the quality of output, by decomposing the  output effect into high quality and low quality output  effect. We decompose profit changes into various factors  such as quantity and price effect, technical change,  efficiency change, resource mix, product mix and scale  effect, without and after controlling for quality. In both  cases, the positive impact on profit changes came from  substantial improvements in technical change, the cost  efficient allocation of resources by substituting labour  with capital and small improvements in efficiency gains.  The input price and scale effect had a significant negative  impact on profit changes. This technique is of great  interest for regulators to evaluate the effectiveness of  regulation and companies to identify the determinants of  profit change and improve future performance, even if  sample sizes are limited.},
      url = {http://ageconsearch.umn.edu/record/142950},
      doi = {https://doi.org/10.22004/ag.econ.142950},
}