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2002•The World Bank Economic ReviewRequires access

How Different Is the Efficiency of Public and Private Water Companies in Asia?

Antonio Estache

Open publisher page 286 citations

Abstract

Several studies have compared the efficiency of publicly and privately owned water utilities and reached conflicting conclusions on the impact of ownership on efficiency. This article provides further evidence by estimating a stochastic cost frontier for a sample of Asian and Pacific regional water companies. The results show that efficiency is not significantly different in private companies than in public ones.

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What this paper is about

Several studies have compared the efficiency of publicly and privately owned water utilities and reached conflicting conclusions on the impact of ownership on efficiency. This article provides further evidence by estimating a stochastic cost frontier for a sample of Asian and Pacific regional water companies. The results show that efficiency is not significantly different in private companies than in public ones.

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OpenAlex reports 286 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

Several studies have compared the efficiency of publicly and privately owned water utilities and reached conflicting conclusions on the impact of ownership on efficiency. This article provides further evidence by estimating a stochastic cost frontier for a sample of Asian and Pacific regional water companies. The results show that efficiency is not significantly different in private companies than in public ones.

Key concepts: Public ownership, Frontier, Stochastic frontier analysis, Sample (material), Business, Cost efficiency, Production–possibility frontier, Economics

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