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Productivity growth and price regulation of Slovenian water distribution utilities = Rast produktivnosti i cjenovna regulacija vodoopskrbnih poduzeća u Sloveniji

Filippini, Massimo ; Hrovatin, Nevenka ; Zorić, Jelena: University of Ljubljana, Faculty of Economics, Ljubljana, Slovenia

In: Zbornik Radova Ekonomski Fakultet u Rijeka, 2010, vol. 28, no. 1, p. 89-112

This paper aims to analyse the price regulation method and performance of the water industry in Slovenia. A stochastic cost frontier model is employed to estimate and decompose the total factor productivity (TFP) growth of water distribution utilities in the 1997-2003 period. The main goal is to find out whether the lack of proper incentives to improve performance has resulted in the low TFP...

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Cost efficiency of Slovenian water distribution utilities : an application of stochastic frontier methods

Filippini, Massimo ; Hrovatin, Nevenka ; Zorić, Jelena

In: Journal of productivity analysis, 2008, vol. 29, no. 2, p. 169-182

This study estimates cost inefficiency and economies of scale of Slovenian water distribution utilities over the 1997-2003 period by employing several different stochastic frontier methods. The results indicate that significant cost inefficiencies are present in the utilities. An introduction of incentive-based price regulation scheme might help resolve this problem. However, the inefficiency...

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