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Global public spending efficiency in Tuscan municipalities

Author

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  • Laura Carosi
  • Giovanna D'Inverno
  • Letizia Ravagli

Abstract

The aim of this paper is the study of Tuscan municipalities public expenditure efficiency, with particular attention on the effect of the municipal size, through a DEA analysis. In line with the existing literature, the study includes a second stage analysis to explain municipal inefficiencies through a Tobit regression. The results obtained through the DEA analysis and explained by the Tobit regression appear consistent and could represent a sound suggestion to correct the expenditure of the inefficient municipalities. The new evidences related to the efficiency analysis of local government described in the paper provide an important contribution to the current debate, being this the first study carried out on Tuscan municipalities and introducing a new indicator for the computation of the efficiency scores which offer a new way of procedure. Moreover, the study addresses the long debated issue on municipal size proving that the municipal size really affects the efficiency of the public expenditure (i.e. the bigger is a municipality, the greater is its level of public spending efficiency).

Suggested Citation

  • Laura Carosi & Giovanna D'Inverno & Letizia Ravagli, 2014. "Global public spending efficiency in Tuscan municipalities," Discussion Papers 2014/175, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    • Handle: RePEc:pie:dsedps:2014/175
    Note: ISSN 2039-1854
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    File URL: https://www.ec.unipi.it/documents/Ricerca/papers/2014-175.pdf
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    Cited by:

    1. Venturini, Fiorenza, 2020. "The unintended composition effect of the subnational government fiscal rules: The case of Italian municipalities," European Journal of Political Economy, Elsevier, vol. 63(C).
    2. Fiorenza Venturini, 2018. "The Unintended Composition Effect of the Subnational Government Fiscal Rules: The Case of Italian Municipalities," Working papers 70, Società Italiana di Economia Pubblica.
    3. Francesco Aiello & Graziella Bonanno & Luigi Capristo, 2017. "Explaining Differences In Efficiency: The Case Of Local Government Literature," Working Papers 201704, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    4. Marco Alberto De Benedetto & Sergio Destefanis & Luigi Guadalupi, 2019. "Electoral Reform and Public Sector Efficiency. Some Evidence From Italian Municipalities," Working Papers 3_237, Dipartimento di Scienze Economiche e Statistiche, Università degli Studi di Salerno.
    5. Isabel Narbón-Perpiñá & Kristof De Witte, 2016. "Local governments’ efficiency: A systematic literature review – Part II," Working Papers 2016/21, Economics Department, Universitat Jaume I, Castellón (Spain).
    6. Maria Basílio & Clara Pires & Carlos Borralho & José Pires Reis, 2020. "Local government efficiency: is there anything new after Troika’s intervention in Portugal?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 309-332, June.

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    More about this item

    Keywords

    Spending efficiency; Municipalities; Data Envelopment Analysis; Tobit regression.;
    All these keywords.

    JEL classification:

    • C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models; Threshold Regression Models
    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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