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Efficiency Measurement in the Local Public Sector: Econometric and Mathematical Programming Frontier Techniques

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  • Andrew Worthington
  • Brian Dollery

Abstract

Local government in advanced economies is undergoing a period of rapid reform aimed at enhancing its efficiency and effectiveness. Accordingly, the definition, measurement and improvement of organisational performance is crucial. Despite the importance of efficiency measurement in local government it is only relatively recently that econometric and mathematical frontier techniques have been applied to local public services. This paper attempts to provide a synoptic survey of the comparatively few empirical analyses of efficiency measurement in local government. We examine both the measurement of inefficiency in local public services and the determinants of local public sector efficiency. The implications of efficiency measurement for practitioners in local government are examined by way of conclusion.

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File URL: http://external-apps.qut.edu.au/business/documents/discussionPapers/2000/Worthington_Dollery_78.pdf
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Bibliographic Info

Paper provided by School of Economics and Finance, Queensland University of Technology in its series School of Economics and Finance Discussion Papers and Working Papers Series with number 078.

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Date of creation: 20 Aug 2000
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Handle: RePEc:qut:dpaper:078

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Web page: http://www.bus.qut.edu.au/faculty/economics/
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  1. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  2. Rajiv D. Banker & Richard C. Morey, 1986. "The Use of Categorical Variables in Data Envelopment Analysis," Management Science, INFORMS, vol. 32(12), pages 1613-1627, December.
  3. Charnes, Abraham & Cooper, William W. & Li, Shanling, 1989. "Using data envelopment analysis to evaluate efficiency in the economic performance of Chinese cities," Socio-Economic Planning Sciences, Elsevier, vol. 23(6), pages 325-344.
  4. Andrew Worthington, 1999. "Performance Indicators and Efficiency Measurement in Public Libraries," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(1), pages 31-42.
  5. Bjurek, Hans & Hjalmarsson, Lennart & Forsund, Finn R., 1990. "Deterministic parametric and nonparametric estimation of efficiency in service production : A comparison," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 213-227.
  6. Donald F. Vitaliano, 1997. "X-Inefficiency in the Public Sector: the Case of Libraries," Public Finance Review, , vol. 25(6), pages 629-643, November.
  7. De Borger, Bruno & Kerstens, Kristiaan, 1996. "Cost efficiency of Belgian local governments: A comparative analysis of FDH, DEA, and econometric approaches," Regional Science and Urban Economics, Elsevier, vol. 26(2), pages 145-170, April.
  8. Deller, Steven C & Rudnicki, Edward, 1992. " Managerial Efficiency in Local Government: Implications on Jurisdictional Consolidation," Public Choice, Springer, vol. 74(2), pages 221-31, September.
  9. Bjurek, Hans & Kjulin, Urban & Gustafsson, Bjorn, 1992. " Efficiency, Productivity and Determinants of Inefficiency at Public Day Care Centers in Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages S173-87, Supplemen.
  10. Cook, Wade D. & Kazakov, Alex & Roll, Yaakov & Seiford, Lawrence M., 1991. "A data envelopment approach to measuring efficiency: Case analysis of highway maintenance patrols," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 20(1), pages 83-103.
  11. Donald F. Vitaliano, 1998. "Assessing Public Library Efficiency Using Data Envelopment Analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 69(1), pages 107-122, 03.
  12. Steven C. Deller & John M. Halstead, 1994. "Efficiency in the Production of Rural Road Services: The Case of New England Towns," Land Economics, University of Wisconsin Press, vol. 70(2), pages 247-259.
  13. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
  14. Deller, Steven C, 1992. "Production Efficiency in Local Government: A Parametric Approach," Public Finance = Finances publiques, , vol. 47(1), pages 32-44.
  15. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
  16. Dollery, Brian E & Worthington, Andrew C, 1996. " The Empirical Analysis of Fiscal Illusion," Journal of Economic Surveys, Wiley Blackwell, vol. 10(3), pages 261-97, September.
  17. De Borger, B, et al, 1994. " Explaining Differences in Productive Efficiency: An Application to Belgian Municipalities," Public Choice, Springer, vol. 80(3-4), pages 339-58, September.
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Cited by:
  1. Kathleen Goffey & Andrew Worthington, 2002. "Motor Vehicle Usage Patterns in Australia: A Comparative Analysis of Driver, Vehicle & Purpose Characteristics for Household & Freight Travel," School of Economics and Finance Discussion Papers and Working Papers Series 117, School of Economics and Finance, Queensland University of Technology.
  2. Laura Di Giorgio & Massimo Filippini & Giuliano Masiero, 2012. "The impact of the institutional form on the cost efficiency of nursing homes," Quaderni della facoltà di Scienze economiche dell'Università di Lugano 1203, USI Università della Svizzera italiana.
  3. Peter Bönisch & Peter Haug & A. Illy & L. Schreier, 2011. "Municipality Size and Efficiency of Local Public Services: Does Size Matter?," IWH Discussion Papers 18, Halle Institute for Economic Research.
  4. Maria Sousa & Borko Stošić, 2005. "Technical Efficiency of the Brazilian Municipalities: Correcting Nonparametric Frontier Measurements for Outliers," Journal of Productivity Analysis, Springer, vol. 24(2), pages 157-181, October.
  5. Hitzschke, Stephan, 2011. "The Optimal Size of German Cities An Efficiency Analysis Perspective," Darmstadt Discussion Papers in Economics 50741, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute of Economics (VWL).

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