An analysis of the efficiency of Italian museums using a generalised conditional efficiency model

Museums are among the most relevant cultural institutions and assume a central role from the cultural and the economic perspectives in a country having an outstanding cultural heritage, such as Italy, which makes the evaluation of their efficiency of primary importance. However, so far, the literature evaluating museums’ efficiency has often neglected the distinction between outputs under the direct control of museums and outcomes, which depend on users’ involvement, thus providing incorrect conclusions on museums’ performance. In this paper, we employ a generalised conditional efficiency model to assess the true efficiency of Italian museums, i.e. the efficiency in the provision of museums’ service potential, and to consistently deal with the impact on the efficiency of the socio-demographic and institutional environment in which museums operate. Results show that the operational environment matters. Among other aspects, conditional estimates suggest that higher income levels and larger hospitality sectors positively influence museums efficiency.