Vol. 2001 No. 1 (2001)
Bayesian Hierarchical Model for Evaluating Cost-Effectiveness of Power-Distribution Equipment Systems in Senegal
Abstract
In Senegal, power-distribution equipment systems play a critical role in ensuring reliable electricity supply to households and businesses. A Bayesian hierarchical model was developed using data from multiple power-distribution sites in Senegal. This model incorporates uncertainty through robust standard errors to estimate the cost-effectiveness of equipment systems across various conditions. The analysis revealed a significant variation (p < 0.05) in the cost-effectiveness metrics, indicating that regional and infrastructure-specific factors influence system performance. This study demonstrates how Bayesian hierarchical modelling can be used to assess power-distribution equipment systems' efficiency across diverse settings in Senegal. Future research could explore additional variables impacting system performance and validate findings through practical applications. The maintenance outcome was modelled as $Y_{it}=\beta_0+\beta_1X_{it}+u_i+\varepsilon_{it}$, with robustness checked using heteroskedasticity-consistent errors.