IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v8y2016i8p760-d75495.html
   My bibliography  Save this article

Efficiency and Sustainability of Local Public Goods and Services. Case Study for Romania

Author

Listed:
  • Marius Sorin Dincă

    () (Faculty of Economic Sciences and Business Administration, Transylvania University of Brasov, 1 Colina Universitatii Street, Building A, Brasov 500036, Romania)

  • Gheorghiţa Dincă

    () (Faculty of Economic Sciences and Business Administration, Transylvania University of Brasov, 1 Colina Universitatii Street, Building A, Brasov 500036, Romania)

  • Maria Letiţia Andronic

    () (Faculty of Economic Sciences and Business Administration, Transylvania University of Brasov, 1 Colina Universitatii Street, Building A, Brasov 500036, Romania)

Abstract

The aim of this paper is to evaluate the efficiency and sustainability of some local publicly-provided services (social, educational, public utilities). We have measured the Romanian local administrations expenditures’ efficiency in supplying public goods and services using the non-parametric model of data envelopment analysis. The appraisal of efficiency and sustainability is mandatory when studying the optimization of public sector costs born out of taxpayers’ money and the increase in the quantity and quality of supplied services. The services we have selected for this article cover many aspects of citizens’ life quality. We have processed data from 2011 for all 41 Romanian counties and the municipality of Bucharest. For each decision unit, we have established a technical score, either quantifying the efficiency of expenditures allocated for supplying a certain level of services or measuring results’ sustainability in terms of services rendered to local collectivities, considering a constant expenditure level. Based on the analyzed data, we have concluded that only 11 counties satisfy the required conditions. Furthermore, units registering a lower level of per capita expenditures have efficiency scores above the overall average, while counties with more citizens/taxpayers provided more public services compared to others.

Suggested Citation

  • Marius Sorin Dincă & Gheorghiţa Dincă & Maria Letiţia Andronic, 2016. "Efficiency and Sustainability of Local Public Goods and Services. Case Study for Romania," Sustainability, MDPI, Open Access Journal, vol. 8(8), pages 1-24, August.
  • Handle: RePEc:gam:jsusta:v:8:y:2016:i:8:p:760-:d:75495
    as

    Download full text from publisher

    File URL: http://www.mdpi.com/2071-1050/8/8/760/pdf
    Download Restriction: no

    File URL: http://www.mdpi.com/2071-1050/8/8/760/
    Download Restriction: no

    References listed on IDEAS

    as
    1. Kalirajan, K P & Shand, R T, 1999. " Frontier Production Functions and Technical Efficiency Measures," Journal of Economic Surveys, Wiley Blackwell, vol. 13(2), pages 149-172, April.
    2. Deller, Steven C & Rudnicki, Edward, 1992. "Managerial Efficiency in Local Government: Implications on Jurisdictional Consolidation," Public Choice, Springer, vol. 74(2), pages 221-231, September.
    3. Gisela Di Meglio & Metka Stare & Andrés Maroto & Luis Rubalcaba, 2015. "Public services performance: an extended framework and empirical assessment across the enlarged EU," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 33(2), pages 321-341, April.
    4. 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.
    5. Judith Clifton & Daniel Díaz-Fuentes & Marcos Fernández-Gutiérrez, 2014. "The impact of socio-economic background on satisfaction: evidence for policy-makers," Journal of Regulatory Economics, Springer, vol. 46(2), pages 183-206, October.
    6. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416-416.
    7. Antonio Afonso & Sonia Fernandes, 2006. "Measuring local government spending efficiency: Evidence for the Lisbon region," Regional Studies, Taylor & Francis Journals, vol. 40(1), pages 39-53.
    8. Alan B. Krueger, 1999. "Experimental Estimates of Education Production Functions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 497-532.
    9. Davis, Michael L & Hayes, Kathy, 1993. "The Demand for Good Government," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 148-152, February.
    10. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    11. Schwab, Robert M. & Oates, Wallace E., 1991. "Community composition and the provision of local public goods : A normative analysis," Journal of Public Economics, Elsevier, vol. 44(2), pages 217-237, March.
    12. Cooper, Samuel T. & Cohn, Elchanan, 1997. "Estimation of a frontier production function for the South Carolina educational process," Economics of Education Review, Elsevier, vol. 16(3), pages 313-327, June.
    13. Pier Alda Ferrari & Giancarlo Manzi, 2014. "Citizens evaluate public services: a critical overview of statistical methods for analysing user satisfaction," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 17(3), pages 236-252, September.
    14. Po, Rung-Wei & Guh, Yuh-Yuan & Yang, Miin-Shen, 2009. "A new clustering approach using data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 199(1), pages 276-284, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:dug:actaec:y:2017:i:6:p:292-302 is not listed on IDEAS

    More about this item

    Keywords

    local public services’ sustainability; public expenditures; technical efficiency scores; data envelopment analysis;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:8:y:2016:i:8:p:760-:d:75495. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (XML Conversion Team). General contact details of provider: http://www.mdpi.com/ .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.