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Corruption, Accountability and Efficiency. An Application to Municipal Solid Waste Services

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  • Graziano Abrate
  • Federico Boffa
  • Fabrizio Erbetta
  • Davide Vannoni

Abstract

This paper explores the link between accountability, corruption and efficiency in the context of a career concern model where politically con- nected local monopolies are in charge of the provision of a local public service. We fi?nd that both corruption and a low degree of accountabil- ity induce managers to reduce effort levels, thereby contributing to drive down efficiency. Our predictions are tested using data on solid waste management services provided by a large sample of Italian municipalities. The results of the estimation of a stochastic cost frontier model provide robust evidence that high corruption levels and low degrees of account- ability substantially increase cost inefficiency. Finally, we show that the negative impact of corruption is weaker for municipalities ruled by left- wing parties, while the positive impact of accountability is stronger if the refuse collection service is managed by limited liability companies.

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Bibliographic Info

Paper provided by Collegio Carlo Alberto in its series Carlo Alberto Notebooks with number 316.

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Length: 35 pages
Date of creation: 2013
Date of revision:
Handle: RePEc:cca:wpaper:316

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Keywords: corruption; accountability efficiency; solid waste;

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References

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  16. Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli & Davide Vannoni, 2011. "The Costs of Disposal and Recycling. An Application to Italian Municipal Solid Waste Services," Working papers 20, Former Department of Economics and Public Finance "G. Prato", University of Torino.
  17. Graziano Abrate & Fabrizio Erbetta & Giovanni Fraquelli & Davide Vannoni, 2012. "Size and Density Economies in Refuse Collection," Working papers 009, Department of Economics and Statistics (Dipartimento di Scienze Economico-Sociali e Matematico-Statistiche), University of Torino.
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