Cost efficiency of Tunisian water Utility: Heteroskedastic Stochastic Frontier Approach

Author:

Amor Tawfik Ben1,Mellah Thouraya1

Affiliation:

1. Manouba University

Abstract

Abstract We examine the operating cost inefficiencies and economies of scale of Tunisian drinking water utilities. Different stochastic models that incorporate heterogeneity have been investigated. We have examined the stochastic frontier model and the fixed effects model. The results show that these models produce different results. Therefore we estimate a specific fixed-effects model where the inefficiency term remains in the model and the fixed effect is intended only to capture the firm-specific heterogeneity. This model performs better results and it allows differentiating between non-heterogeneity and inefficiency. The results indicate that significant cost inefficiencies are present in the utilities and the economies of scale are found in small-sized utilities, while large utilities exhibit diseconomies of scale. Jel Classification : C16; C23; D24; L95, L51.

Publisher

Research Square Platform LLC

Reference24 articles.

1. Formulation and Estimation of Stochastic Frontier Production Function Models;Aigner DJ;J Econ,1977

2. Bottasso A, Conti M (2003) "Cost Inefficiency in the English and Welsh Water Industry: An Heteroskedastic Stochastic Cost Frontier Approach, Economics Discussion Papers

3. The use of a variable cost function in the regulation of the Italian water industry;Antonioli B;Utilities Policy,2001

4. :“Stochastic Coefficient Frontier Model in the Estimation of Technical Efficiency of Irrigated Agriculture in Tunisia”;Ben Amor and Goaeid;Agricultural J,2011

5. Ben Amor and Muller (2011) : “Application of Stochastic Production Frontier in the Estimation of Technical Efficiency of Irrigated Agriculture in Tunisia ”Agricultural Journal 5 (2): 50–56, Medwell Journals

同舟云学术

1.学者识别学者识别

2.学术分析学术分析

3.人才评估人才评估

"同舟云学术"是以全球学者为主线,采集、加工和组织学术论文而形成的新型学术文献查询和分析系统,可以对全球学者进行文献检索和人才价值评估。用户可以通过关注某些学科领域的顶尖人物而持续追踪该领域的学科进展和研究前沿。经过近期的数据扩容,当前同舟云学术共收录了国内外主流学术期刊6万余种,收集的期刊论文及会议论文总量共计约1.5亿篇,并以每天添加12000余篇中外论文的速度递增。我们也可以为用户提供个性化、定制化的学者数据。欢迎来电咨询!咨询电话:010-8811{复制后删除}0370

www.globalauthorid.com

TOP

Copyright © 2019-2024 北京同舟云网络信息技术有限公司
京公网安备11010802033243号  京ICP备18003416号-3