As is the case of other infrastructure sectors the availability of efficiency estimation software based on statistical inference – freely distributed via the internet and relatively easy to use – recently inflated the number of corresponding applications in the water sector. The robustness of regulatory measures based on inferences from efficiency measures nevertheless crucially depends on theoretically well-founded estimates. This is illustrated by using an empirical example of an inconsistent technical efficiency frontier for water utilities in Germany.
Research Article| December 01 2005
Theory matters! Efficiency measurement and water utilities
Water Supply (2005) 5 (6): 251–261.
J. Sauer; Theory matters! Efficiency measurement and water utilities. Water Supply 1 December 2005; 5 (6): 251–261. doi: https://doi.org/10.2166/ws.2005.0071
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