Abstract.-Quality is a dimension of water services that has been repeatedly omitted in the study of performance of water utilities. In this paper, we make use of Data Envelopment Analysis techniques (DEA) to compute both conventional quantity-based and quality-adjusted indicators of technical efficiency for a sample of Spanish water utilities. The key assumptions are that a lack of quality (bad quality) can be regarded as a bad output, and the existence of a trade-off between quantity and quality. Our main results indicate that quality matters in measuring technical performance, the difference between conventional and quality-adjusted evaluations representing the opportunity cost of maintaining quality. Averages and distribution functions significantly differ between both assessments of performance, although water utilities do not seem to rank differently.

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Purpose The purpose of this paper is to analyze a variety of factors that can explain the differences in commercial bank efficiency among 17 countries in Latin America (LatAm). Design/methodology/approach In a first stage, data envelopment analysis (DEA) and conditional efficiency analysis techniques are used to assess the relative efficiency level of 409 banks for the 2014-2016 period. The conditional efficiency approach considers environmental variables (that are beyond the manager’s control), which could influence the shape and the level of the boundary of the attainable set. In the second stage, the resulting conditional efficiency scores are correlated with internal variables (those that are under the manager’s control), which might affect the distribution of the inefficiencies. For this purpose, an econometric approach developed by Simar and Wilson (2007) is used. Findings First stage scores reveal the heterogeneity of average efficiency within the region. Regarding the factors that may explain the differences in performance in the LatAm banking sector, the results allow us to state that certain internal variables such as bank size, the ratio of loans to total assets and the ratio of non-performing loans show the expected relationship to efficiency, in line with much of the previous literature. Originality/value This is the first time that conditional efficiency and Simar and Wilson (2007) approaches have been applied at the same time to analyse the LatAm banking industry.

In this paper adjusted input-specific scores of technical efficiency are computed for a sample of Spanish water utilities. Performance is adjusted by netting out efficiency scores from the effect of operating environments and statistical noise. The results show that computation of adjusted efficiency scores at the input level manifestly improves the assessment of utilities' performance in our sample of water utilities. In addition, several environmental variables capable of affecting input-specific technical management are discovered, ownership or demand seasonality among them. Finally, distributions of conventional and adjusted scores of technical performance are found to be statistically different for some inputs.

Further positive social and economic development (SED) requires modelling and analysis for evaluating its results to ground directions for future development. The purpose of the paper is to study the problem of estimating of SED, to form the methodology for modelling its results and to create an aggregated econometric indicator within the framework of unified conceptual approach for the European Union (EU) countries. To achieve this goal, it is necessary to solve the following objectives: to determine the essence of the concept of SED, to study traditional approaches to measure SED, to give an overview of the DP2 modelling method, to discover and structure the elements of SED in the EU countries and to argue a conceptual approach to modelling its outcomes. The study is based on the method of mathematical modelling in economics based on Distance P2 method. Econometric modelling, as well as regression analyze, was used to develop a synthetic indicator DP2 for evaluating SED of the EU countries. Also, the research process was based on analysis, synthesis and the system approach for information processing, as well as on the method of comparative and statistical analysis, quality and quantity analysis. The results of the deep research showed that there is no unified approach to modelling SED. The Distance P2 method was first proposed to measure SED at the national level exactly for the EU. The methodology for measuring SED specifically for the EU countries based on the conceptual approach was developed and substantiated. Based on the proposed methodology and taking into account the special characteristics of the region studied - the social and economic DP2 indicator for the EU countries was created. This study proposes to build a synthetic indicator DP2 to model results of progress in SED, especially in the EU. The practical implications of the synthetic indicator DP2 for modelling and analysis of SED of the EU countries can be a prospect for further research. Applied aspect of these studies is advising the EU's public policy with the aim of advancing. Using the DP2 synthetic indicator of SED for the EU countries will identify and substantiate the main directions for developing the country's domestic policy to improve the quality of life of the populations. Also, the results of the study can be used for advisory purposes to develop and optimize the EU development strategy 2020-2030. The value and originality of the paper lie in further application of the methodology of modelling the SED of the EU countries through synthetic indicator DP2. This will expand opportunities for increasing the national economy’s efficiency, that is highly important in terms of increased international competition.