Allocative efficiency of rural water supply - a globally flexible SGM cost frontier

Sauer, Johannes and Frohberg, Klaus (2007) Allocative efficiency of rural water supply - a globally flexible SGM cost frontier. Journal of Productivity Analysis, 27 (1). pp. 31-40. ISSN 0895-562X . (The full text of this publication is not available from this repository)

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Abstract

This contribution investigates the efficiency of water suppliers in rural areas of East and West Germany. A non-radial measure of input specific allocative inefficiency is used to reduce the distributional dependency with respect to the inefficiency parameters. It is based on the demand system of a flexible cost function for the variable inputs labour, energy and chemicals modelled by applying a modified symmetric generalized McFadden functional form. Concavity restrictions, as required by economic theory, are imposed. The analysis reveals that efforts towards increasing suppliers' allocative efficiency should focus on the relatively inefficient usage of the input chemicals. The input specific allocative model specification was found to be superior to the overall allocative specification.

Item Type: Article
Uncontrolled keywords: functional form; input specific allocative efficiency; symmetric generalized McFadden; rural water supply
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HB Economic Theory
Q Science > QA Mathematics (inc Computing science)
Divisions: Faculties > Social Sciences > Kent Business School > Agri-Environment Economics
Depositing User: Suzanne Duffy
Date Deposited: 14 May 2008 07:17
Last Modified: 24 Jun 2014 11:23
Resource URI: http://kar.kent.ac.uk/id/eprint/3166 (The current URI for this page, for reference purposes)
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