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Spend more, get more? An inquiry into English local government performance

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  • Federico Revelli

Abstract

Based on a unique measure of performance of English local governments in the provision of public services (Comprehensive Performance Assessment, CPA), this paper uses panel data (2002--7) to identify the determinants of performance. In particular, by thoroughly exploiting the features of the British system of local government finance and the mandatory nature of decentralized public service provision, this paper aims at investigating the impact of government spending on public service outcomes. Due to the nature of CPA ratings--measured on a five category (poor to excellent) scale--the empirical work relies on an ordered response approach allowing for cross-sectional heterogeneity. The empirical evidence suggests that local public expenditures in excess of centrally set spending standards have a detrimental effect on performance. Copyright 2010 Oxford University Press 2009 All rights reserved, Oxford University Press.

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  • Federico Revelli, 2010. "Spend more, get more? An inquiry into English local government performance," Oxford Economic Papers, Oxford University Press, vol. 62(1), pages 185-207, January.
  • Handle: RePEc:oup:oxecpp:v:62:y:2010:i:1:p:185-207
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    1. Sjahrir, Bambang Suharnoko & Kis-Katos, Krisztina & Schulze, Günther G., 2014. "Administrative Overspending in Indonesian Districts: The Role of Local Politics," World Development, Elsevier, vol. 59(C), pages 166-183.
    2. Goel, Rajeev K. & Mazhar, Ummad & Nelson, Michael A. & Ram, Rati, 2017. "Different forms of decentralization and their impact on government performance: Micro-level evidence from 113 countries," Economic Modelling, Elsevier, vol. 62(C), pages 171-183.
    3. Guglielmo Barone & Guido de Blasio & Alessio D'Ignazio & Andrea Salvati, 2017. "Incentives to local public service provision: an evaluation of Italy’s Obiettivi di Servizio," Questioni di Economia e Finanza (Occasional Papers) 388, Bank of Italy, Economic Research and International Relations Area.
    4. Raffaela Giordano & Sergi Lanau & Pietro Tommasino & Petia Topalova, 2015. "Does Public Sector Inefficiency Constrain Firm Productivity; Evidence from Italian Provinces," IMF Working Papers 15/168, International Monetary Fund.
    5. Maria Alessandra Antonelli & Veronica Grembi, 2014. "Central Targets and local Agendas: Missing Lisbon 2010," Public Finance Research Papers 6, Istituto di Economia e Finanza, DIGEF, Sapienza University of Rome.
    6. Terra, Rafael & Mattos, Enlinson, 2017. "Accountability and yardstick competition in the public provision of education," Journal of Urban Economics, Elsevier, vol. 99(C), pages 15-30.
    7. Geys, Benny & Konrad, Kai A., . "Federalism and optimal allocation across levels of governance," Chapters in Economics, University of Munich, Department of Economics.
    8. Wahid Abdallah, 2017. "Electronic filing System, Bureaucratic Efficiency and Public Service Delivery: Evidence from Bangladesh," Working Papers id:12223, eSocialSciences.
    9. Ben Lockwood & Francesco Porcelli, 2013. "Incentive Schemes for Local Government: Theory and Evidence from Comprehensive Performance Assessment in England," American Economic Journal: Economic Policy, American Economic Association, vol. 5(3), pages 254-286, August.
    10. Villani, Salvatore, 2010. "Per un giusto equilibrio tra efficacia ed efficienza nell’attuazione della legge delega sul federalismo fiscale: verso la definizione dei LEP e dei costi standard delle Regioni," MPRA Paper 29513, University Library of Munich, Germany.
    11. Villani, Salvatore, 2010. "Elementi ai fini della definizione della nozione di costo standard: una rassegna della letteratura e delle principali esperienze estere
      [Basic elements defining the standard cost concept. A survey
      ," MPRA Paper 29683, University Library of Munich, Germany.
    12. Gersbach Hans, 2012. "Contractual Democracy," Review of Law & Economics, De Gruyter, vol. 8(3), pages 823-851, December.
    13. Isabel Narbón-Perpiñá & Kristof De Witte, 2016. "Local governments’ efficiency: A systematic literature review – Part I," Working Papers 2016/20, Economics Department, Universitat Jaume I, Castellón (Spain).
    14. Isabel Narbón-Perpiñá & Kristof De Witte, 2016. "Local governments’ efficiency: A systematic literature review – Part II," Working Papers 2016/21, Economics Department, Universitat Jaume I, Castellón (Spain).

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