IDEAS home Printed from https://ideas.repec.org/a/taf/pubmmg/v42y2022i4p251-261.html
   My bibliography  Save this article

The association between budget inaccuracy and technical efficiency in Australian local government

Author

Listed:
  • Dana McQuestin
  • Masayoshi Noguchi
  • Joseph Drew

Abstract

Little is known about the effect of budget inaccuracy on technical efficiency and financial resilience. To remedy this gap, we employed a six-year panel of data to conduct various econometric estimations. We found that budget inaccuracy did indeed lead to worse technical efficiency outcomes. Further investigation revealed that the cause of the inaccuracy was largely beyond the control of the local government authorities, suggesting a limited ability to mitigate the problem independently. As a result, it seems that co-operation from higher tiers of government will be required to address this problem and ensure that local governments can operate more efficiently.ABSTRACTBudgeting is a valuable anticipatory tool, able to support technically efficient production, manage financial vulnerability, and increase financial resilience. However, inaccuracies in the budgeting process can undermine these objectives. The authors investigated the sources of budget inaccuracy and the consequences for technical efficiency, employing a six-year panel of Australian local government data. The results suggest a reduction in technical efficiency of 0.6% for every 1% increase in expenditure inaccuracy.

Suggested Citation

  • Dana McQuestin & Masayoshi Noguchi & Joseph Drew, 2022. "The association between budget inaccuracy and technical efficiency in Australian local government," Public Money & Management, Taylor & Francis Journals, vol. 42(4), pages 251-261, May.
    • Handle: RePEc:taf:pubmmg:v:42:y:2022:i:4:p:251-261
    DOI: 10.1080/09540962.2021.1893464
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/09540962.2021.1893464
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/09540962.2021.1893464?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:pubmmg:v:42:y:2022:i:4:p:251-261. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RPMM20 .

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

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.