Econometric analysis of the drinking water utilities cost and services quality delivered to users
Analyse économétrique des coûts des services d'eau potable et qualité des prestations offertes aux usagers
Résumé
Issues on service quality are crucial for water utility management and regulation. Omitting these aspects can lead to possible bias in estimating the efficiency of services. We integrate in a Translog cost function variables proxying this multidimensionality. Empirical results show that taking into account the level of quality of the delivered services has a significant impact on the measure of the efficiency computed from a stochastic frontier. Moreover we highlight that efficiency depends on ownership (public vs. private) and level of quality.