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Measuring local government spending efficiency: Evidence for the Lisbon region

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Author Info
António Afonso
Sónia Fernandes

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Abstract

AFONSO A. and FERNANDES S. (2006) Measuring local government spending efficiency: evidence for the Lisbon region, Regional Studies 40, 39--53. The expenditure efficiency of Portuguese local governments in 2001 was assessed using Data Envelopment Analysis for production frontier estimation. A composite municipal output indicator was constructed and input and output efficiency scores were computed for 51 Portuguese municipalities in the region of Lisbon and Vale do Tejo. This allows a determination of the extent of municipal spending that seems to be 'wasted’ relative to the theoretical 'best-practice’ frontier. The results suggest that Vale do Tejo municipalities could achieve, on average, the same level of output allegedly using around one-third fewer resources, improving performance without necessarily increasing municipal spending. Municipal expenditure, Technical efficiency, Data Envelopment Analysis (DEA), Lisbon AFONSO A. and FERNANDES S. (2006) L'efficacité de la dépense de l'administration locale: des preuves DEA pour la région de Lisbonne, Regional Studies 40, 39--53. A partir de la Data Envelopment Analysis quant à l'estimation de la frontière de la production, on évalue l'efficacité de l' administration locale au Portugal en 2001. On construit une indice composite des sorties de la municipalité et, par la suite, on calcule des scores de l'efficacité des entrées et des sorties pour 51 municipalités portugaises dans région de Lisbonne et de Vale do Tejo. Cela permet la détermination de l'importance de la dépense municipale qui semble être 'gaspillée’ par rapport à la frontière de 'la meilleure pratique’ théorique. Les résultats laissent supposer que les municipalités de Vale do Tejo pourraient atteindre, en moyenne, le même niveau de sorties en employant, prétendument, un tiers des ressources, ce qui permet une amélioration de la performance sans augmenter, nécessairement, la dépense municipale. Dépenses municipales, Efficacité technique, Data Envelopment Analysis (DEA) , Lisbonne AFONSO A. and FERNANDES S. (2006) Ausgaben Efficienz von Ortsverwaltungen: DEA-Beweise für die Lissaboner Region, Regional Studies 40, 39--53. Die Ausgabenefficienz von portugiesischen Ortsverwaltungen im Jahre 2001 wird mit Hilfe einer DEA-Analyse für Produktionsgrenzberechnungen beurteilt. Die Autoren konstruieren einen gegliedetenen Gemeindeaufwandsindikator, und berechnen Aufwands- und Ertragseffizienzspunkte für 51 portugiesische Gemeinden in den Regionen von Lissabon und Vale do Tejo. Dies gestattet die Bestimmung des Ausmaßes städtischer Ausgaben, die, gemessen an der theoretischen bestmöglichen Praxisgrenze, anscheinend verschwendet werden. Die Ergebnisse legen nahe, daß Vale do Tejo im Durchschnitt die bei angeblich etwa 1/3 geringeren Aufwand die gleiche Ertragshöhe erreichen und die Leistung also steigern könnten, ohne „unbedingt die Gemeindeausgaben zu erhöhen. Gemeindeausgaben, technische Leistung, Data Envelopment Analysis (DEA) , Lissabon AFONSO A. and FERNANDES S. (2006) Gestión eficaz del gasto público por parte de gobiernos locales: Pruebas de AED para la región de Lisboa, Regional Studies 40, 39--53. En este ensayo analizamos en qué medida los gobiernos portugueses locales gestionaron eficazmente el gasto público en 2001. Para ello utilizamos el método de Análisis Envolvente de Datos (AED) con el objetivo de obtener una estimación de producción aplicable según un valor límite. Asimismo construimos un indicador de rendimiento municipal compuesto y calculamos la puntuación en función de la eficacia de entrada y de salida en 51 municipios portugueses de la región de Lisboa y Vale do Tejo. Esto nos permite determinar cuál es el gasto municipal 'desperdiciado’ con relación al valor límite teórico de 'mejores métodos de trabajo’. Nuestros resultados indican que los municipios de Vale do Tejo supuestamente podrían obtener de promedio el mismo nivel de rendimiento utilizando un tercio menos de los recursos de modo que mejorasen el rendimiento sin tener que aumentar necesariamente el gasto municipal. Gasto público municipal, Eficacia técnica, Análisis Envolvente de Datos (AED), Lisboa

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Article provided by Taylor and Francis Journals in its journal Regional Studies.

Volume (Year): 40 (2006)
Issue (Month): 1 (February)
Pages: 39-53
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Handle: RePEc:taf:regstd:v:40:y:2006:i:1:p:39-53

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  1. Kathy Hayes & Laura Razzolini & Leola Ross, 1998. "Bureaucratic choice and nonoptimal provision of public goods: Theory and evidence," Public Choice, Springer, vol. 94(1), pages 1-20, January. [Downloadable!] (restricted)
    Other versions:
  2. Oates, Wallace E. & Schwab, Robert M., 1988. "Economic competition among jurisdictions: efficiency enhancing or distortion inducing?," Journal of Public Economics, Elsevier, vol. 35(3), pages 333-354, April. [Downloadable!] (restricted)
  3. António Afonso & Miguel St. Aubyn, 2005. "Non-parametric approaches to education and health efficiency in OECD countries," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 227-246, November. [Downloadable!]
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  1. António Afonso & Sónia Fernandes, 2008. "Assessing Hospital Efficiency: Non-parametric Evidence for Portugal," Working Papers 2008/07, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
  2. Revelli Federico, 2008. "Spend more, get more? An inquiry into English local government performance," Department of Economics Working Papers 200804, University of Turin. [Downloadable!]
  3. Philippe Widmer & Peter Zweifel, 2008. "Provision of Public Goods in a Federalist Country: Tiebout Competition, Fiscal Equalization, and Incentives for Efficiency in Switzerland," Working Papers 0804, University of Zurich, Socioeconomic Institute. [Downloadable!]
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