A comparison between efficiency models DEA and MARS (Multivariate Adaptive Regression Splines) in the integrated water service in Italy
Journal title RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO
Author/s Francesco Vidoli, Rita Mileno
Publishing Year 2010 Issue 2010/2 Language Italian
Pages 33 P. 5-37 File size 434 KB
DOI 10.3280/REST2010-002001
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Italy’s water supply industry is characterized by a multitude of utilities and widely diverging prices, possibly resulting from structural differences beyond the control of firms’ management, but also from inefficiencies. The aim of this paper is to assess the efficiency in recent years, through a flexible non-parametric methodology. Methods and Results This paper, from a methodological point of view, enhances a non-parametric regression method called MARS (Multivariate Adaptive Regression Splines) estimated on the production frontier; this method permits to bypass the choice of a specific functional form; the method, in fact, provides for approximate function using linear splines without any assumption on a functional form. We also provide comparisons with other non-parametric techniques. Conclusions Applying this specific method, despite poor assumptions on the cost function form, we provide an estimate for the Italian water companies; we have found spatial and dimensional patterns, especially in metropolitan vs. low density areas. Keywords: technical efficiency, Multivariate Adaptive Regression Splines, water supply industry Parole chiave: efficienza tecnica produttiva, Multivariate Adaptive Regression Splines, servizio idrico integrato
Keywords: Income distribution, Monte Carlo simulation, microsimulation, local income distribution
Jel codes: C14, D20, L95
Francesco Vidoli, Rita Mileno, Un confronto tra modelli DEA (Data Envelopment Analysis) e MARS (Multivariate Adaptive Regression Splines) nella stima dell'efficienza produttiva nel ervizio idrico integrato in Italia in "RIVISTA DI ECONOMIA E STATISTICA DEL TERRITORIO" 2/2010, pp 5-37, DOI: 10.3280/REST2010-002001