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Public versus Private Water Delivery: Cost Comparisons

Author

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  • Ronald Teeples
  • Susan Feigenbaum
  • David Glyer

Abstract

We respond to criticisms raised by Robert McGuire and Robert Ohsfeldt concerning our comparative cost study of regulated private and public water delivery firms, Review of Economics and Statistics (November 1983). Summary results from our subsequent and ongoing research are included as empirical responses to their econometric questions. Model replications estimated from superior data confirm the 1983 results, that pooling of public-private cost functions cannot be rejected. In addition to conceptually defending our study methodology, we argue that cost comparisons, although difficult, are a legitimate means of assessing effects that alternative ownerships may have on production of water delivery services.

Suggested Citation

  • Ronald Teeples & Susan Feigenbaum & David Glyer, 1986. "Public versus Private Water Delivery: Cost Comparisons," Public Finance Review, , vol. 14(3), pages 351-366, July.
    • Handle: RePEc:sae:pubfin:v:14:y:1986:i:3:p:351-366
    DOI: 10.1177/109114218601400307
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    References listed on IDEAS

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    9. repec:bla:ecorec:v:61:y:1985:i:173:p:535-39 is not listed on IDEAS
    10. Lau, Lawrence J & Yotopoulos, Pan A, 1971. "A Test for Relative Efficiency and Application to Indian Agriculture," American Economic Review, American Economic Association, vol. 61(1), pages 94-109, March.
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    Cited by:

    1. François Destandau & Serge Garcia, 2014. "Service quality, scale economies and ownership: an econometric analysis of water supply costs," Journal of Regulatory Economics, Springer, vol. 46(2), pages 152-182, October.
    2. Schmit, Todd M. & Boisvert, Richard N., 1997. "A Hedonic Approach to Estimating Operation and Maintenance Costs for New York Municipal Water Systems," Agricultural and Resource Economics Review, Cambridge University Press, vol. 26(2), pages 184-195, October.
    3. David H. Good, 1992. "Productive Efficiency and Contract Management: Some Evidence From Public Transit Agencies," Public Finance Review, , vol. 20(2), pages 195-215, April.
    4. Imran Chowdhury, 2019. "Social entrepreneurship, water supply, and resilience: lessons from the sanitation sector," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 9(3), pages 327-339, September.
    5. Francisco González-Gómez & Miguel García‐Rubio & Francisco Alcalá-Olid & M. Ortega-Díaz, 2013. "Outsourcing and Efficiency in the Management of Rural Water Services," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 27(3), pages 731-747, February.
    6. Miguel A. García-Rubio & Francisco González-Gómez & Jorge Guardiola, 2009. "Performance and ownership in the governance of urban water," FEG Working Paper Series 09/03, Faculty of Economics and Business (University of Granada).

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