This study aims to evaluate municipal infrastructure asset systems in Ethiopia and assess their efficiency through panel data analysis. Panel data will be used to estimate the efficiency gains of municipal infrastructure assets in Ethiopia. The study employs a stochastic frontier analysis (SFA) model to account for technical inefficiency. The analysis reveals that technical inefficiency contributes significantly to overall system performance, with an average proportion of 25%. This research highlights the importance of addressing technical inefficiencies in municipal infrastructure asset systems through targeted interventions. Policy recommendations include prioritising maintenance and upgrading of assets to enhance efficiency and reduce costs. Panel data, stochastic frontier analysis, municipal infrastructure, technical inefficiency, Ethiopia The maintenance outcome was modelled as Y₈ₓ=₀+₁X₈ₓ+uᵢ+₈ₓ, with robustness checked using heteroskedasticity-consistent errors.
Mengistu Teklay (Sun,) studied this question.