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Determinants of efficiency in child care provision

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  • Anna Montén
  • Christian Thater

Abstract

This article analyzes the efficiency in the provision of child care services at the municipal level and identifies the main determinants of inefficiency. We use a unique data set on the local child care expenditures in the eastern German State of Saxony. The analysis is performed in two stages. First, we measure the efficiency by using a Data Envelopment Analysis (DEA). Second, we consider political, fiscal and demographic variables in a truncated regression to identify the determinants of inefficiency. We find substantial differences in efficiency; the median municipality is up to 28% inefficient in expenditures on child care. Explanatory variables such as an uncompensated mayor or a larger share of over 65-year olds significantly increases inefficiency.

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Bibliographic Info

Paper provided by Ifo Institute for Economic Research at the University of Munich in its series Ifo Working Paper Series with number Ifo Working Paper Nr. 83.

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Date of creation: 2010
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Handle: RePEc:ces:ifowps:_83

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Keywords: Child care; efficiency analysis; municipalities; service provision.;

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Cited by:
  1. Peter Bönisch & Peter Haug & A. Illy & L. Schreier, 2011. "Municipality Size and Efficiency of Local Public Services: Does Size Matter?," IWH Discussion Papers, Halle Institute for Economic Research 18, Halle Institute for Economic Research.
  2. Laura Carosi & Giovanna D’Inverno & Letizia Ravagli, 2014. "Global public spending efficiency in Tuscan municipalities," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2014/175, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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