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Efficiency in the Production of Rural Road Services: The Case of New England Towns

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  • Steven C. Deller
  • John M. Halstead

Abstract

An analysis of size and managerial efficiency of northern New England towns in the production of rural road services is reported. A stochastic cost frontier was used as the normative efficiency reference set. Empirical results provide evidence of economies of size in the production of road service in New England and that size inefficiencies are present. Results also suggest that managerial inefficiencies, or input use inefficiencies, are present and costs may be 40 percent higher than necessary. At issue is the effectiveness of current institutional arrangements: small town governments may best match local demand with services, but at high cost.

Suggested Citation

  • Steven C. Deller & John M. Halstead, 1994. "Efficiency in the Production of Rural Road Services: The Case of New England Towns," Land Economics, University of Wisconsin Press, vol. 70(2), pages 247-259.
    • Handle: RePEc:uwp:landec:v:70:y:1994:i:2:p:247-259
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    Citations

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    Cited by:

    1. World Bank, 2008. "Improving the Management of Secondary and Tertiary Roads in the South East Europe Countries," World Bank Publications - Reports 7786, The World Bank Group.
    2. STEVEN C. DELLER & David G. Hinds & Donald L. Hinman, 2001. "Local Public Services in Wisconsin: Alternatives for Municipalities with a Focus on Privatization," Wisconsin-Madison Agricultural and Applied Economics Staff Papers 441, Wisconsin-Madison Agricultural and Applied Economics Department.
    3. Kalb, Alexander, 2009. "Determinanten der Effizienz lokaler Gebietskörperschaften," ZEW Wachstums- und Konjunkturanalysen, ZEW - Leibniz Centre for European Economic Research, vol. 12(1), pages 8-9.
    4. Mandy Kriese, 2008. "Effizienzanalyse der sächsischen Gemeinden," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(05), pages .3-13, October.
    5. Andrew Worthington & Brian Dollery, 2000. "Efficiency Measurement in the Local Public Sector: Econometric and Mathematical Programming Frontier Techniques," School of Economics and Finance Discussion Papers and Working Papers Series 078, School of Economics and Finance, Queensland University of Technology.
    6. Brown, Dennis M. & Flake, Oliver L., 1999. "Rural Transportation: An Annotated Bibliography," Miscellaneous Publications 323881, United States Department of Agriculture, Economic Research Service.
    7. Sarmento, Joaquim Miranda & Renneboog, Luc & Verga-Matos, Pedro, 2017. "Measuring highway efficiency : A DEA approach and the Malquist index," Other publications TiSEM 23264815-321e-45a3-83ee-9, Tilburg University, School of Economics and Management.
    8. World Bank, 2008. "Improving the Management of Secondary and Tertiary Roads in the South East Europe Countries," World Bank Publications - Reports 6213, The World Bank Group.
    9. Halstead, John M. & Park, William M., 1996. "The Role Of Economic Analysis In Local Government Decisions: The Case Of Solid Waste Management," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 25(1), pages 1-7, April.
    10. Koles, Michael & Deller, Steven C., 2000. "The Economic Impact of the Wittman Airport on Winnebago County," Staff Papers 200607, University of Wisconsin-Madison, Department of Agricultural and Applied Economics.
    11. Edelman, Mark, 2000. "Potential Cost Savings and Framework of Strategies for Improved Delivery of Government Services," Staff General Research Papers Archive 2074, Iowa State University, Department of Economics.
    12. Kalb, Alexander, 2009. "What determines local governments' technical efficiency? The case of road maintenance," ZEW Discussion Papers 09-047, ZEW - Leibniz Centre for European Economic Research.
    13. Carolin Fritzsche, 2018. "Analyzing the Efficiency of County Road Provision – Evidence from Eastern German Counties," ifo Working Paper Series 249, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    14. Alexander Kalb, 2014. "What Determines Local Governments' Cost-efficiency? The Case of Road Maintenance," Regional Studies, Taylor & Francis Journals, vol. 48(9), pages 1483-1498, September.
    15. Dilber Çağlar Onbaşıoğlu, 2021. "The Turkish Cypriot Municipalities’ Productivity and Performance: An Application of Data Envelopment Analysis and the Tobit Model," JRFM, MDPI, vol. 14(9), pages 1-19, August.
    16. Alexander Ebertz & Mandy Kriese & Marcel Thum & Helke Seitz, 2008. "Bewertung von lokalen Standortfaktoren für Haushalte und Unternehmen in Sachsen: Entwicklung von Indikatoren zur Überprüfung der Demographietauglichkeit von Förderprojekten der Sächsischen Aufbaubank:," ifo Dresden Studien, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 46.
    17. Mandy Kriese, 2008. "Effizienzanalyse der sächsischen Gemeinden," ifo Dresden berichtet, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 15(05), pages 3-13, October.
    18. Schmit, Todd M. & Boisvert, Richard N., 1996. "Rural Utilities Service's Water and Waste Disposal Loan and Grant Program and its Contribution to Small Public Water System Improvements in New York State," Research Bulletins 122990, Cornell University, Department of Applied Economics and Management.
    19. Krause, Mark A., 1996. "Cost Savings From Consolidating North Dakota'S Counties," Agricultural Economics Reports 23321, North Dakota State University, Department of Agribusiness and Applied Economics.

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