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

Chen LIN; Sanford V. BERG

doi:10.1007/s11151-008-9160-5

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

Chen LIN, Sanford V. BERG

Department of Economics

Research output: Journal Publications › Journal Article (refereed) › peer-review

38 Citations (Scopus)

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.

Original language	English
Pages (from-to)	53-75
Number of pages	23
Journal	Review of Industrial Organization
Volume	32
Issue number	1
DOIs	https://doi.org/10.1007/s11151-008-9160-5
Publication status	Published - 1 Jan 2008

Bibliographical note

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

Keywords

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

Access to Document

10.1007/s11151-008-9160-5

Cite this

@article{f89d1c43b3f14ae9808c9c774a81453b,

title = "Incorporating service quality into yardstick regulation : an application to the Peru water sector",

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.",

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

author = "Chen LIN and BERG, {Sanford V.}",

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

year = "2008",

month = jan,

day = "1",

doi = "10.1007/s11151-008-9160-5",

language = "English",

volume = "32",

pages = "53--75",

journal = "Review of Industrial Organization",

issn = "0889-938X",

publisher = "Springer Netherlands",

number = "1",

}

TY - JOUR

T1 - Incorporating service quality into yardstick regulation : an application to the Peru water sector

AU - LIN, Chen

AU - BERG, Sanford V.

N1 - Paper presented at the Conference of the Association-of-Water-and-Sanitation-Regulatory-Entities-of-the-Americans, May, 2004, Buenos Aires, Argentina.

PY - 2008/1/1

Y1 - 2008/1/1

N2 - 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.

AB - 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.

KW - Data envelopment analysis (DEA)

KW - Malmquist productivity index

KW - Service quality

KW - Yardstick regulation

UR - http://commons.ln.edu.hk/sw_master/7027

UR - http://www.scopus.com/inward/record.url?scp=45049086598&partnerID=8YFLogxK

U2 - 10.1007/s11151-008-9160-5

DO - 10.1007/s11151-008-9160-5

M3 - Journal Article (refereed)

SN - 0889-938X

VL - 32

SP - 53

EP - 75

JO - Review of Industrial Organization

JF - Review of Industrial Organization

IS - 1

ER -

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

Abstract

Bibliographical note

Keywords

Access to Document

Other files and links

Fingerprint

Cite this