Advanced Search
MyIDEAS: Login to save this article or follow this journal

Economías de escala, densidad y alcance en la provisión pública de infraestructura básica municipal

Contents:

Author Info

  • Angel Prieto

    ()
    (Iranasa-CSIC)

  • José L. Zofio

    ()
    (Universidad Autónoma de Madrid)

  • Inmaculada Alvarez

    ()
    (Universidad Autónoma de Madrid)

Abstract

Municipalities manage their budgets in a complex national, regional, and local legal framework while being under the cross-pressure between of citizens claiming for better public goods and higher-level Administrations requiring higher allocative efficiency in public spending. The legal framework determines the scheme of intergovernmental finance based on well specified cooperation programs for the provision of basic infrastructure that result in different stocks of local infrastructures. We estímate translog cost functions to quantify economies of scale, density and scope in the provision of infrastructure dealing with water supply, sewerage and cleansing of residual waters, paving and lighting. We find that these economies are present to a large degree due to the existing rural structure, characterized by a suboptimal municipal size. This carries an excess cost in the provision of infrastructure in terms of the existing infrastructure stock and the amount of intergovernmental finance. Taking Castilla y Leonas the geographical reference, we estimate infrastructure stocks relying on the Local Infrastructure and Equipment Survey while developing a new price database based on best practice engineering approaches.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ief.es/documentos/recursos/publicaciones/revistas/hac_pub/190_ART_3.pdf
Download Restriction: no

Bibliographic Info

Article provided by IEF in its journal Hacienda Pública Española/Revista de Economía Pública.

Volume (Year): 190 (2009)
Issue (Month): 3 (September)
Pages: 59-94

as in new window
Handle: RePEc:hpe:journl:y:2009:v:190:i:3:p:59-94

Contact details of provider:
Postal: Avda. Cardenal Herrera Oria, 378, 28035 Madrid
Phone: 91-339.89.15
Fax: 91-339.89.64
Email:
Web page: http://www.ief.es
More information through EDIRC

Related research

Keywords: Municipalities; Public infrastructure; Translog cost function; Economies of scale; density and scope.;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Johannes Sauer & Klaus Frohberg, 2007. "Allocative efficiency of rural water supply – a globally flexible SGM cost frontier," Journal of Productivity Analysis, Springer, vol. 27(1), pages 31-40, February.
  2. Garcia, Serge & Moreaux, Michel & Reynaud, Arnaud, 2007. "Measuring economies of vertical integration in network industries: An application to the water sector," International Journal of Industrial Organization, Elsevier, vol. 25(4), pages 791-820, August.
  3. Douglas W. Caves & Laurits R. Christensen & Michael W. Tretheway, 1984. "Economies of Density versus Economies of Scale: Why Trunk and Local Service Airline Costs Differ," RAND Journal of Economics, The RAND Corporation, vol. 15(4), pages 471-489, Winter.
  4. Barten, A. P., 1969. "Maximum likelihood estimation of a complete system of demand equations," European Economic Review, Elsevier, vol. 1(1), pages 7-73.
  5. NAUGES Céline & VAN DEN BERG Caroline, 2007. "How "natural" are natural monopolies in the water supply and sewerage sector? Case studies from developing and transition economies," LERNA Working Papers 07.05.226, LERNA, University of Toulouse.
  6. Picazo-Tadeo, Andres J. & Saez-Fernandez, Francisco J. & Gonzalez-Gomez, Francisco, 2008. "Does service quality matter in measuring the performance of water utilities," Utilities Policy, Elsevier, vol. 16(1), pages 30-38, March.
  7. Arunava Bhattacharyya & Elliott Parker & Kambiz Raffiee, 1994. "An Examination of the Effect of Ownership on the Relative Efficiency of Public and Private Water Utilities," Land Economics, University of Wisconsin Press, vol. 70(2), pages 197-209.
  8. Sabbioni, Guillermo, 2008. "Efficiency in the Brazilian sanitation sector," Utilities Policy, Elsevier, vol. 16(1), pages 11-20, March.
  9. Serge Garcia & Alban Thomas, 2003. "Regulation of Public Utilities under Asymmetric Information," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 26(1), pages 145-162, September.
  10. Serge Garcia & Alban Thomas, 2001. "The Structure of Municipal Water Supply Costs: Application to a Panel of French Local Communities," Journal of Productivity Analysis, Springer, vol. 16(1), pages 5-29, July.
  11. John Ashton, 2000. "Cost efficiency in the UK water and sewerage industry," Applied Economics Letters, Taylor & Francis Journals, vol. 7(7), pages 455-458.
  12. Paola Fabbri & Giovanni Fraquelli, 2000. "Costs and Structure of Technology in the Italian Water Industry," Empirica, Springer, vol. 27(1), pages 65-82, March.
  13. Panzar, John C & Willig, Robert D, 1981. "Economies of Scope," American Economic Review, American Economic Association, vol. 71(2), pages 268-72, May.
  14. Robert M. Clark & Richard G. Stevie, 1981. "A Water Supply Cost Model Incorporating Spatial Variables," Land Economics, University of Wisconsin Press, vol. 57(1), pages 18-32.
  15. David S Saal & David Parker, 2000. "The impact of privatization and regulation on the water and sewerage industry in England and Wales: a translog cost function model," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 21(6), pages 253-268.
  16. Colin Kirkpatrick & David Parker & Yin-Fang Zhang, 2006. "An Empirical Analysis of State and Private-Sector Provision of Water Services in Africa," World Bank Economic Review, World Bank Group, vol. 20(1), pages 143-163.
  17. Fumitoshi Mizutani & Takuya Urakami, 2001. "articles: Identifying network density and scale economies for Japanese water supply organizations," Papers in Regional Science, Springer, vol. 80(2), pages 211-230.
  18. repec:ccp:journl:v:23:y:2003:i:5:p:137-149 is not listed on IDEAS
  19. Randall W. Eberts & Daniel P. McMillen, 1999. "Agglomeration Economies and Urban Public Infrastructure," Book chapters authored by Upjohn Institute researchers, in: Paul Cheshire & Edwin S. Mills (ed.), handbook or Regional and Urban Economics, volume 3, pages 1455-1495 W.E. Upjohn Institute for Employment Research.
  20. Deller, Steven C & Rudnicki, Edward, 1992. " Managerial Efficiency in Local Government: Implications on Jurisdictional Consolidation," Public Choice, Springer, vol. 74(2), pages 221-31, September.
  21. Hunt, Lester C & Lynk, Edward L, 1995. "Privatisation and Efficiency in the UK Water Industry: An Empirical Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 57(3), pages 371-88, August.
  22. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February.
  23. Massimo Filippini & Nevenka Hrovatin & Jelena Zorić, 2008. "Cost efficiency of Slovenian water distribution utilities: an application of stochastic frontier methods," Journal of Productivity Analysis, Springer, vol. 29(2), pages 169-182, April.
  24. José Lorenzo & Isabel Sánchez, 2007. "Efficiency evaluation in municipal services: an application to the street lighting service in Spain," Journal of Productivity Analysis, Springer, vol. 27(3), pages 149-162, June.
  25. Panzar, John C & Willig, Robert D, 1977. "Economies of Scale in Multi-Output Production," The Quarterly Journal of Economics, MIT Press, vol. 91(3), pages 481-93, August.
  26. Aida, Kazuo & Cooper, William W. & Pastor, Jésus T. & Sueyoshi, Toshiyuki, 1998. "Evaluating Water Supply Services in Japan with RAM: a Range-adjusted Measure of Inefficiency," Omega, Elsevier, vol. 26(2), pages 207-232, April.
  27. Francisco González Gómez & Miguel Angel García Rubio, 2008. "Efficiency in the management of urban water services. What have we learned after four decades of research?," Hacienda Pública Española, IEF, vol. 185(2), pages 39-67, July.
  28. Ford, J L & Warford, J J, 1969. "Cost Functions for the Water Industry," Journal of Industrial Economics, Wiley Blackwell, vol. 18(1), pages 53-63, November.
  29. Michael Marlow, 1988. "Fiscal decentralization and government size," Public Choice, Springer, vol. 56(3), pages 259-269, March.
  30. Rosenthal, Stuart S. & Strange, William C., 2004. "Evidence on the nature and sources of agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 49, pages 2119-2171 Elsevier.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Carvalho, Pedro & Marques, Rui Cunha & Berg, Sanford, 2011. "A meta-regression analysis of benchmarking studies on water utilities market structure," MPRA Paper 32894, University Library of Munich, Germany.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:hpe:journl:y:2009:v:190:i:3:p:59-94. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Olga Cantó Sánchez) The email address of this maintainer does not seem to be valid anymore. Please ask Olga Cantó Sánchez to update the entry or send us the correct address.

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.