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Evaluating Gains From Mergers In A Non‐Parametric Public Good Model Of Police Services

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  • Richard SIMPER
  • Thomas WEYMAN‐JONES

Abstract

ABSTRACT**: The merger of police services in the UK has been suggested on the grounds that efficiency improvements will be possible. This paper applies a public good model of the police service to evaluate the potential efficiency gains from mergers of police services in England and Wales. It uses a non‐parametric method suggested by Bogetoft and Wang (2005). We construct a dataset that reflects the public good nature of police service and allows for the exogenous imposition by government on the level of police service budgets. Our main finding is that English and Welsh police service mergers could lead to increases in police staff resource efficiencies between 10 per cent and 70 per cent. Hence, we confirm the government's decision to merge English and Welsh police services.

Suggested Citation

  • Richard SIMPER & Thomas WEYMAN‐JONES, 2008. "Evaluating Gains From Mergers In A Non‐Parametric Public Good Model Of Police Services," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 79(1), pages 3-33, March.
    • Handle: RePEc:bla:annpce:v:79:y:2008:i:1:p:3-33
    DOI: 10.1111/j.1467-8292.2007.00350.x
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    1. Amor Diez-Ticio & Maria-Jesus Mancebon, 2002. "The efficiency of the Spanish police service: an application of the multiactivity DEA model," Applied Economics, Taylor & Francis Journals, vol. 34(3), pages 351-362.
    2. John Ruggiero, 2004. "Data envelopment analysis with stochastic data," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 55(9), pages 1008-1012, September.
    3. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    4. Peter Bogetoft & Dexiang Wang, 2005. "Estimating the Potential Gains from Mergers," Journal of Productivity Analysis, Springer, vol. 23(2), pages 145-171, May.
    5. Drake, Leigh & Simper, Richard, 2000. "Productivity estimation and the size-efficiency relationship in English and Welsh police forces: An application of data envelopment analysis and multiple discriminant analysis," International Review of Law and Economics, Elsevier, vol. 20(1), pages 53-73, March.
    6. Drake, Leigh & Simper, R., 2003. "The measurement of English and Welsh police force efficiency: A comparison of distance function models," European Journal of Operational Research, Elsevier, vol. 147(1), pages 165-186, May.
    7. Thanassoulis, Emmanuel, 1995. "Assessing police forces in England and Wales using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 87(3), pages 641-657, December.
    8. Leigh M. Drake & Richard Simper, 2005. "The Measurement Of Police Force Efficiency: An Assessment Of U.K. Home Office Policy," Contemporary Economic Policy, Western Economic Association International, vol. 23(4), pages 465-482, October.
    9. Sun, Shinn, 2002. "Measuring the relative efficiency of police precincts using data envelopment analysis," Socio-Economic Planning Sciences, Elsevier, vol. 36(1), pages 51-71, March.
    10. Leigh Drake & Richard Simper, 2001. "The Economic Evaluation of Policing Activity: An Application of a Hybrid Methodology," European Journal of Law and Economics, Springer, vol. 12(3), pages 173-192, November.
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    Cited by:

    1. Rogge, Nicky & Simper, Richard & Verschelde, Marijn & Hall, Maximilian, 2015. "An analysis of managerialism and performance in English and Welsh male prisons," European Journal of Operational Research, Elsevier, vol. 241(1), pages 224-235.
    2. Hall, Maximilian J.B. & Liu, Wenbin B. & Simper, Richard & Zhou, Zhongbao, 2013. "The economic efficiency of rehabilitative management in young offender institutions in England and Wales," Socio-Economic Planning Sciences, Elsevier, vol. 47(1), pages 38-49.
    3. Angeliki Flokou & Vassilis Aletras & Dimitris Niakas, 2017. "Decomposition of potential efficiency gains from hospital mergers in Greece," Health Care Management Science, Springer, vol. 20(4), pages 467-484, December.
    4. Saastamoinen, Antti & Bjørndal, Endre & Bjørndal, Mette, 2017. "Specification of merger gains in the Norwegian electricity distribution industry," Energy Policy, Elsevier, vol. 102(C), pages 96-107.
    5. Blesse, Sebastian & Diegmann, André, 2019. "Police reorganization and crime: Evidence from police station closures," ZEW Discussion Papers 18-044, ZEW - Leibniz Centre for European Economic Research, revised 2019.
    6. Saastamoinen, Antti & Bjørndal, Endre & Bjørndal, Mette, 2016. "Specification of merger gains in the Norwegian electricity distribution industry," Discussion Papers 2016/7, Norwegian School of Economics, Department of Business and Management Science.
    7. Graziano Abrate & Clementina Bruno & Fabrizio Erbetta & Giovanni Fraquelli & Anna Giolitti, 2017. "Efficiency in the Consolidation of the Italian Water Sector," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2447-2463, June.

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    More about this item

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods
    • L30 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - General

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