To be (public), or not to be: is that the question for the Italian water industry?

This paper analyzes whether the different typologies of ownership models of Italian water utilities affect their technical efficiency, measuring it in terms of Total Factor Productivity TFP. The results indicate that the proprietary model (public versus mixed) has a neutral impact on technical efficiency, consistently with a vast literature on the subject.  This result is important considering the recent reform (Ronchi decree). To date, in fact, neither an authentic competition nor any substantial privatization has occurred in the water industry so the original goals of Galli law have not been reached. Thus the Ronchi decree simplifies the delegation modalities of the water service (a call-to-tenders became the only possible form of delegation) and requests a more private ownership participation. But is it important for the efficiency?  In support of the results we also report estimates of a previous econometric study conducted on the frontiers of technical efficiency.