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Efficiency evaluation in municipal services: an application to the street lighting service in Spain

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  • José Lorenzo

    ()

  • Isabel Sánchez

    ()

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    Abstract

    Efficiency evaluation is very important in the municipal realm because of its impact on the people’s standard of living. However, in most cases the value of public output is hardly significant, and therefore measurement is necessarily limited to estimating technical efficiency, which is calculated using physical inputs and outputs. A major part of municipal services can be provided through different types of public management. This plurality of options lends greater relevance to the evaluation. This paper analyzes efficiency in the public street lighting service in Spanish towns, by means of DEA methodology, pursuing two objectives: to estimate the technical efficiency achieved and to discover whether differences in efficiency can be explained by the type of management, that has been chosen, whether public or private. The results of the analysis allow us to confirm that there is a significant relationship between the variables defined as inputs into the process and efficiency. However, the relationship is not very significant for the variables considered as outputs, in some cases. It was also detected that the factors defining the characteristics of the environment and the type of management, whether public or private, do not have a statistically significant impact on efficiency levels. Copyright Springer Science+Business Media, LLC 2007

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    Bibliographic Info

    Article provided by Springer in its journal Journal of Productivity Analysis.

    Volume (Year): 27 (2007)
    Issue (Month): 3 (June)
    Pages: 149-162

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    Handle: RePEc:kap:jproda:v:27:y:2007:i:3:p:149-162

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    Web page: http://www.springerlink.com/link.asp?id=100296

    Related research

    Keywords: Data Envelopment Analysis (DEA); Efficiency; Street lighting; Municipal administration; Public sector; H 71; H 83;

    References

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    1. Simar, L. & Wilson, P.W., . "Sensitivity analysis of efficiency scores: how to bootstrap in nonparametric frontier models," CORE Discussion Papers RP -1304, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    11. Banker, Rajiv D. & Chang, Hsihui & Cooper, William W., 2004. "A simulation study of DEA and parametric frontier models in the presence of heteroscedasticity," European Journal of Operational Research, Elsevier, vol. 153(3), pages 624-640, March.
    12. Nolan, J. F. & Ritchie, P. C. & Rowcroft, J. E., 2002. "Identifying and measuring public policy goals: ISTEA and the US bus transit industry," Journal of Economic Behavior & Organization, Elsevier, vol. 48(3), pages 291-304, July.
    13. Shang, Jen & Sueyoshi, Toshiyuki, 1995. "A unified framework for the selection of a Flexible Manufacturing System," European Journal of Operational Research, Elsevier, vol. 85(2), pages 297-315, September.
    14. Ferrier, Gary D. & Lovell, C. A. Knox, 1990. "Measuring cost efficiency in banking : Econometric and linear programming evidence," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 229-245.
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    Cited by:
    1. Isabel García-Sánchez & Luis Rodríguez-Domínguez & Javier Parra Domínguez, 2013. "Evaluation of the efficacy and effectiveness of the Spanish security forces," European Journal of Law and Economics, Springer, vol. 36(1), pages 57-75, August.
    2. Angel Prieto & José L. Zofio & Inmaculada Alvarez, 2009. "Economías de escala, densidad y alcance en la provisión pública de infraestructura básica municipal," Hacienda Pública Española, IEF, vol. 190(3), pages 59-94, September.
    3. Cuadrado-Ballesteros, Beatriz & García-Sánchez, Isabel-María & Prado-Lorenzo, José-Manuel, 2013. "Effect of modes of public services delivery on the efficiency of local governments: A two-stage approach," Utilities Policy, Elsevier, vol. 26(C), pages 23-35.
    4. Anna Montén & Christian Thater, 2011. "Determinants of Efficiency in Child-Care Provision," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 67(4), pages 378-403, December.
    5. Isabel-María García-Sánchez, 2009. "Measuring the efficiency of local police force," European Journal of Law and Economics, Springer, vol. 27(1), pages 59-77, February.

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