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Why are some Spanish regions so much more efficient than others?

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Abstract

This article investigates the main sources of heterogeneity in regional efficiency. We estimate a translog stochastic frontier production function in the analysis of Spanish regions in the period 1964-1996, to attempt to measure and explain changes in technical efficiency. Our results confirm that regional inefficiency is significantly and positively correlated with the ratio of public capital to private capital. The proportion of service industries in the private capital, the proportion of public capital devoted to transport infrastructures, the industrial specialization, and spatial spillovers from transport infrastructures in neighbouring regions significantly contributed to improve regional efficiency.

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  • Jaume Puig & Jaime Pinilla, 2008. "Why are some Spanish regions so much more efficient than others?," Economics Working Papers 1067, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:1067
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    Cited by:

    1. Christian Elmelund-Præstekær & David Nicolas Hopmann, 2013. "Understanding Differences in Voter Perceptions of Campaign Agendas: The Case of Local Elections in Denmark," Environment and Planning C, , vol. 31(4), pages 571-584, August.
    2. Thomas Graaff, 2020. "On the estimation of spatial stochastic frontier models: an alternative skew-normal approach," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(2), pages 267-285, April.

    More about this item

    Keywords

    Regional efficiency; Regional spillovers; Human capital; Public capital;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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