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
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
Language
English
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