Explaining Differences in Productive Efficiency: An Application to Belgian Municipalities
The purpose of this paper is to measure and explain variations in productive efficiency of municipal governments in Belgium. Technical efficiency is evaluated using a nonparametric method based on the free disposal hull reference technology. The authors first calculate input, output, and graph Farrell efficiency measures for a cross-section of all 589 Belgian municipalities. In a second stage of the analysis, they explain the calculated differences in efficiency in terms of variables related to the structural characteristics of municipalities and to the institutional environment. Coauthors are K. Kerstens, W. Moesen, and J. Vanneste. Copyright 1994 by Kluwer Academic Publishers
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