Benchmarking South African water utilities using three efficiency analysis methods
This paper compares efficiency scores from the data envelopment analysis (DEA), stochastic frontier analysis (SFA), and stochastic non-parametric envelopment of data (StoNED) methods in the context of regulating South African water utilities. We estimate cost efficiency based on cross-sectional data from 102 South African water utilities in the period 2013/14. We compare the impact of methodological choices on the efficiency scores. For StoNED, we compare scores from two different estimation techniques (method of moments and pseudolikelihood).