Title

Incorporating service quality into yardstick regulation : an application to the Peru water sector

Document Type

Journal article

Source Publication

Review of Industrial Organization

Publication Date

1-1-2008

Volume

32

Issue

1

First Page

53

Last Page

75

Keywords

Data envelopment analysis (DEA), Malmquist productivity index, Service quality, Yardstick regulation

Abstract

Yardstick regulation requires the utilization of benchmarking, a valuable tool for improving public service delivery, especially in developing countries where inefficiencies translate into negative health impacts and social unrest. However, benchmarking must account for both the cost and the quality of service. Using data from 38 Peruvian water utilities (1996-2001), the paper evaluates quality-incorporated firm performance and identifies changes in efficiency, technology (frontier), and service quality. The study utilizes the nonparametric data envelopment analysis (DEA) model, a preference structure model, and the quality-incorporated Malmquist productivity index in evaluating firm performance; the study discusses their implications for regulating state-owned enterprises.

DOI

10.1007/s11151-008-9160-5

Language

English

Print ISSN

0889938X

Publisher Statement

Copyright © Springer Science+Business Media, LLC. 2008. Access to external full text or publisher's version may require subscription.

Additional Information

Paper presented at the Conference of the Association-of-Water-and-Sanitation-Regulatory-Entities-of-the-Americans, May, 2004, Buenos Aires, Argentina.

Full-text Version

Publisher’s Version

Recommended Citation

Lin, C., & Berg, S. V. (2008). Incorporating service quality into yardstick regulation: An application to the Peru water sector. Review of Industrial Organization, 32(1), 53-75. doi: 10.1007/s11151-008-9160-5

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