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Spend more, get more? An inquiry into English local government performance

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  • Federico Revelli

Abstract

Based on a unique measure of performance of English local governments in the provision of public services (Comprehensive Performance Assessment, CPA), this paper uses panel data (2002--7) to identify the determinants of performance. In particular, by thoroughly exploiting the features of the British system of local government finance and the mandatory nature of decentralized public service provision, this paper aims at investigating the impact of government spending on public service outcomes. Due to the nature of CPA ratings--measured on a five category (poor to excellent) scale--the empirical work relies on an ordered response approach allowing for cross-sectional heterogeneity. The empirical evidence suggests that local public expenditures in excess of centrally set spending standards have a detrimental effect on performance. Copyright 2010 Oxford University Press 2009 All rights reserved, Oxford University Press.

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Bibliographic Info

Article provided by Oxford University Press in its journal Oxford Economic Papers.

Volume (Year): 62 (2010)
Issue (Month): 1 (January)
Pages: 185-207

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Handle: RePEc:oup:oxecpp:v:62:y:2010:i:1:p:185-207

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Citations

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Cited by:
  1. Maria Alessandra Antonelli & Veronica Grembi, 2014. "Central Targets and local Agendas: Missing Lisbon 2010," Public Finance Research Papers 6, Istituto di Economia e Finanza, DIGEF, Sapienza University of Rome.
  2. Villani, Salvatore, 2010. "Per un giusto equilibrio tra efficacia ed efficienza nell’attuazione della legge delega sul federalismo fiscale: verso la definizione dei LEP e dei costi standard delle Regioni," MPRA Paper 29513, University Library of Munich, Germany.
  3. Geys, Benny & Konrad, Kai A., 2010. "Federalism and optimal allocation across levels of governance," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-09, Social Science Research Center Berlin (WZB).
  4. Benjamin Lockwood & Francesco Porcelli, 2011. "Incentive Schemes for Local Government: Theory and Evidence from Comprehensive Performance Assessment in England," CESifo Working Paper Series 3483, CESifo Group Munich.
  5. Villani, Salvatore, 2010. "Elementi ai fini della definizione della nozione di costo standard: una rassegna della letteratura e delle principali esperienze estere
    [Basic elements defining the standard cost concept. A survey
    ," MPRA Paper 29683, University Library of Munich, Germany.

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