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Reducing the administrative expenditures as source for increasing the efficiency of local governance under conditions of the financial crisis

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  • Matei, Ani
  • Matei, Lucica

Abstract

In the last 10-15 years the preoccupation concerning administrative expenses were expressed in concrete initiatives. The networks concerning Standard Costs Model (SCM) are worth mentioning for reducing administrative expenses in private business area. European Commission elaborated and is currently implementing a strategy for reducing administrative costs for business inside EU. Similar initiatives can be found at OECD, World Bank and in numerous other European states, and not only, such as USA, UK, Denmark, Netherlands, Sweden, Norway and others. Financial crisis emphasized the preoccupation for administrative expenses reduction. The analysis and measurements focus was transferred towards public business area where most of the states proposed short term strategies to reduce the mentioned expenses. In this context, the strategies comprised all governance levels were expressed in concrete measures to reduce administrative expenses for administrative structure and local public services etc. In many of the situations, the resulted sums from the administrative expenses reductions were redirected towards production process concluding in the maintaining of public service production and increasing its efficiency related to workforce. In this context, the present paper aims to generate economic models that determine the influence of administrative expenses reduction on public services efficiency and, based on these, to formulate conclusions on local governance efficiency.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 23085.

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Date of creation: 15 Apr 2010
Date of revision: 05 May 2010
Handle: RePEc:pra:mprapa:23085

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Keywords: reducing the administrative expenditures; financial crisis; efficiency; local governance;

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  1. Eric Miller, 2008. "An Assessment of CES and Cobb-Douglas Production Functions: Working Paper 2008-05," Working Papers 19992, Congressional Budget Office.
  2. Gilles Mourre, 2009. "Underutilisation of Labour in (Continental Western) Europe: A Detailed GDP Accounting Perspective," Working Papers CEB 09-050.RS, ULB -- Universite Libre de Bruxelles.
  3. Gheorghe Zaman & Zizi Goschin, 2007. "Elasticity of Substitution for Production Functions in Romania and other Countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 2(2(507)), pages 3-12, February.
  4. George Gelauff & Arjan Lejour, 2006. "Five Lisbon highlights; the economic impact of reaching these targets," CPB Document 104, CPB Netherlands Bureau for Economic Policy Analysis.
  5. Rainer Klump & Peter McAdam & Alpo Willman, 2007. "The long-term sucCESs of the neoclassical growth model," Oxford Review of Economic Policy, Oxford University Press, vol. 23(1), pages 94-114, Spring.
  6. Dinu, Teodora & Matei, Ani & Matei, Lucica, 2009. "Marketing of Local Public Services Under the Reduction of Administrative Expenditures," Apas Papers 196, Academic Public Administration Studies Archive - APAS.
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Cited by:
  1. Matei, Ani & Matei, Lucica, 2011. "Knowledge marketing and development in the new knowledge-based economy," MPRA Paper 31474, University Library of Munich, Germany, revised 10 Jun 2011.

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