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Productive efficiency of the Spanish regional public firms: The case of the philharmonic orchestras

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  • Baudelio Urueña Gutiérrez

    ()
    (Departamento de Economía Aplicada, Facultad de CC.EE. y EE., Universidad de Valladolid, España.)

  • Alí Colina Rojas

    ()
    (Departamento de Economía, Facultad de Ciencias Económicas y Sociales, Universidad de Los Andes, Núcleo Universitario Liria, Mérida-Venezuela.)

Abstract

The aim of this research is to determine the measurement of the technical efficiency of Spanish regional public firms that are oriented to the provision of public services. This study represents an innovative contribution because the analysis of the efficiency of this type of firms is a subject scarcely explored. After reviewing the limitations and restrictions that public firms bear as singular organizations: lack of market competition, existence of complex organizational objectives, existence of hardly quantifiable and multidimensional output and missing market prices, it appears appropriate the use of the production frontier analysis, specially the non-parametric technique, because it allows us to surpass the limitations and restrictions that characterize the service-oriented public firms. Lastly, it is measured the technical efficiency in the case of the particular Spanish regional public firms: the symphony orchestras.

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Bibliographic Info

Article provided by Instituto de Investigaciones Económicas y Sociales (IIES). Facultad de Ciencias Económicas y Sociales. Universidad de Los Andes. Mérida, Venezuela in its journal Economía.

Volume (Year): 34 (2009)
Issue (Month): 27 (January-june)
Pages: 57-86

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Handle: RePEc:ula:econom:v:34:y:2009:i:27:p:57-86

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Postal: Facultad de Ciencias Económicas y Sociales. Instituto de Investigaciones Económicas y Sociales. Campus Universitario Liria, Edificio G, Tercer Nivel. Mérida 5101, Estado Mérida, Venezuela
Phone: +58 74 401111 ext. 1081
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Web page: http://iies.faces.ula.ve/
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Keywords: Regional public firm; stochastic production frontier; data envelopment analysis.;

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  1. Pitt, Mark M. & Lee, Lung-Fei, 1981. "The measurement and sources of technical inefficiency in the Indonesian weaving industry," Journal of Development Economics, Elsevier, vol. 9(1), pages 43-64, August.
  2. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
  3. Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
  4. Jondrow, James & Knox Lovell, C. A. & Materov, Ivan S. & Schmidt, Peter, 1982. "On the estimation of technical inefficiency in the stochastic frontier production function model," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 233-238, August.
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