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Measuring what matters in local government: a Municipality Sustainability Index

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  • Paulo Caldas
  • Brian Dollery
  • Rui Cunha Marques

Abstract

This paper focuses on “measuring what matters” in local government and presents a new evaluation model called Municipality Sustainability Index (MSI) based on the integration of a municipality’s financial performance with community sustainability and governance. Using Multi-criteria Decision Analysis methodology (MCDA), we develop an additive evaluation model which aggregates 25 indicators across four dimensions of performance to assess local government sustainability. A decision-making group (DMG) composed of representatives drawn from a network of stakeholders involved in local government- provided information on the requirements needed for a precise evaluation of the performance of any municipality along with prescriptive guidelines for a better local government decision-making. The MSI is used as a tool for local government evaluation and municipal strategic management. In order to illustrate the operation of the model, we applied it to Lisbon and to the sub-region of Leziria do Tejo in Portugal in order to assess performance, financial sustainability and governance. The Portuguese MSI model thus constitutes integrated instrument for local government evaluation.

Suggested Citation

  • Paulo Caldas & Brian Dollery & Rui Cunha Marques, 2022. "Measuring what matters in local government: a Municipality Sustainability Index," Policy Studies, Taylor & Francis Journals, vol. 43(4), pages 738-758, July.
    • Handle: RePEc:taf:cposxx:v:43:y:2022:i:4:p:738-758
    DOI: 10.1080/01442872.2020.1726311
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    Cited by:

    1. Francesca Bartolacci & Rosanna Salvia & Giovanni Quaranta & Luca Salvati, 2022. "Seeking the Optimal Dimension of Local Administrative Units: A Reflection on Urban Concentration and Changes in Municipal Size," Sustainability, MDPI, vol. 14(22), pages 1-17, November.
    2. Rymarzak Małgorzata & Siemińska Ewa & Sakierski Krzysztof, 2022. "Reflecting Sustainability in the Analysis of Highest and Best Use: Evidence from Polish Municipalities," Real Estate Management and Valuation, Sciendo, vol. 30(4), pages 103-115, December.

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