Data envelopment analysis and panel data stochastic frontier models are used to evaluate the impact of the 1995 renewal of regional political institutions and the 1998 tax reform (introduction of IRAP) on the efficiency of Italian regional governments. Both methodologies are applied to a longitudinal dataset, including financial and health care data disaggregated at the regional level from 1991 to 2005. Then, efficiency scores for the regional governments are used to examine the evolution of technical efficiency in the Italian health care sector. The final results provide new empirical evidence in support of the findings of recent theoretical models concerning the way in which fiscal decentralization and electoral accountability affect the efficiency of governmental activity.
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Paper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number
2009/29.
Find related papers by JEL classification: H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
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