Financial Efficiency: Mexican Municipal WUO

Keywords: Data Envelopment Analysis, benchmarking, efficiency, Performance to Scale

Abstract


This study focuses on the financial evaluation of 32 municipal WUOs in Mexico during 2019 and 2021, applying the DEA. Thus, it seeks to answer the question: What is the financial efficiency of municipal WUOs in Mexico in 2019 and 2021, and what can be improved? The hypothesis presented in this study is that there are significant differences in the financial efficiency of municipal WUOs in Mexico. Its objective is to evaluate the financial performance of WUOs. To do this, DEA methodologies are used with the CCR and BCC models to measure technical efficiency and are applied to WUOs in terms of their evolution in average efficiency. In general, most WUOs show increasing returns to scale. Finally, WUOs must generate strategies that optimize their operational and financial efficiency, improve revenue management and adopt good practices.

Author Biography

Gilberto Niebla Lizárraga, Autonomous University of Sinaloa

Gilberto Niebla Lizárraga is a Full Professor at the Faculty of Economic and Administrative Sciences of Mazatlán - Autonomous University of Sinaloa. He completed his PhD studies in local governments and regional development in the specialty of the Autonomous University of the West. He has published 9 articles in various journals, and serves as Academic Coordinator of the Faculty, as well as of relevant Academic Projects. His teaching disciplines include Data Envelopment Analysis, benchmarking, efficiency, productivity, performance, and his interests include Water management.

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Published
2025/05/16
Section
Original Scientific Paper