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Determinants of Efficiency in Child-Care Provision

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  • Anna Montén
  • Christian Thater

Abstract

We analyze the efficiency of the municipal provision of child care and identify the main determinants of inefficiency. A unique data set on child-care expenditures and school readiness in the eastern German state of Saxony allows us to control for possible differences in quality across municipalities. First, we measure the efficiency using data envelopment analysis. We find substantial efficiency differences; the median municipality is up to 28% inefficient. Second, we identify the determinants of inefficiency in a bootstrapped truncated regression. Explanatory variables, such as an uncompensated mayor or a larger share of over-65-year-olds, significantly increase inefficiency.

Suggested Citation

  • Anna Montén & Christian Thater, 2011. "Determinants of Efficiency in Child-Care Provision," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 67(4), pages 378-403, December.
    • Handle: RePEc:mhr:finarc:urn:sici:0015-2218(291112)67:4_378:doeicp_2.0.tx_2-0
    DOI: 10.1628/001522108X614178
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    Cited by:

    1. Laura Carosi & Giovanna D'Inverno & Letizia Ravagli, 2014. "Global public spending efficiency in Tuscan municipalities," Discussion Papers 2014/175, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    2. Carolin Fritzsche, 2018. "Analyzing the Efficiency of County Road Provision – Evidence from Eastern German Counties," ifo Working Paper Series 249, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. Bönisch, Peter & Haug, Peter & Illy, Annette & Schreier, Lukas, 2011. "Municipality Size and Efficiency of Local Public Services: Does Size Matter?," IWH Discussion Papers 18/2011, Halle Institute for Economic Research (IWH).
    4. Koppitz David & Půček Milan & Ochrana František & Plaček Michal, 2015. "Comparative Analysis of Selected Factors Affecting Heating Costs of Schools in Selected Balkan Countries," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 8(1), pages 61-84, June.

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    More about this item

    Keywords

    child care; efficiency analysis; municipalities; service provision;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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