This discussion paper attempts the investigation of inefficiency with respect to water suppliers in rural areas of East and West Germany. This is done by using a nonradial measure of input-specific allocative inefficiency based on the demand system derived from a flexible cost function for the...

This paper deals with the optimal organisation of the water supplying industry by having a close look on the basic characteristics of water as a economic good as well as the specific structure of production. After the formal description of the individual stages of production and the real...