Benchmarking in the sanitation sector in Brazil: An application of stochastic frontier panel data
DOI:
https://doi.org/10.55444/2451.7321.2015.v53.n1.16411Keywords:
technical efficiency, distance function, true random effects, water and sanitation, BrazilAbstract
In this study the technical efficiency of operation and maintenance costs of the providers of water and sanitation in Brazil is estimated using data from the National System of Information on Sanitation (SNIS) during 2004 and 2008. An input distance function is estimated by true random effects (TRE). In addition, the change in total factor productivity in the period and its decomposition into different sources is obtained. The results indicate that, in average, operating cost efficiency showed an annual increase of over 2%, controlling for indicators of production, network dispersion and percentages of treated water. The estimated efficiency by TRE has a low correlation with that obtained by the traditional random effects model due to not assigning the heterogeneity to the constant of the model. In regard with TFP variation in the period, a significant reduction attributable to technical change and scale efficiency is observed; consistent with the low coverage rate of the sector.
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Copyright (c) 2015 Mariana De Santis, Damián Halabi
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