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Measuring The Efficiency And Productivity Change Of Municipalities With An Output Oriented Model:Empirical Evidence Across Greek Municipalities Over The Time Period 2012-2016

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  • Ifigeneia-Dimitra Pougkakioti

    (University of Thessaly, Greece)

Abstract

This paper investigates the relative efficiency and productivity change of municipalities (regions of Thessaly and Central Greece), during the period 2012–2016. This period is rather special, because Greece had to meet the commitments imposed by the very tight fiscal consolidation program and, secondly, a major structural reform had preceded in Greek Local Government. It implements Data Envelopment Analysis (DEA) with output orientation and Malmquist analysis. Additionally, it estimates the effects of the environmental factors on the efficiency using Regression Analysis. The findings suggest that municipalities could produce on average the same quantity of inputs with 23.7% or 10.40% more quantity of outputs and on average refrain 14.90% from the optimal scale. The total factor productivity change has risen by an annual average of 0.6% relatively to the base year 2012. Moreover, the evaluation of municipalities on the basis of efficiency and productivity criteria and the identification of municipalities constituting benchmarks, contribute to policy formulation and region-based approaches.

Suggested Citation

  • Ifigeneia-Dimitra Pougkakioti, 2021. "Measuring The Efficiency And Productivity Change Of Municipalities With An Output Oriented Model:Empirical Evidence Across Greek Municipalities Over The Time Period 2012-2016," Romanian Journal of Regional Science, Romanian Regional Science Association, vol. 15(1), pages 98-125, JUNE.
    • Handle: RePEc:rrs:journl:v:15:y:2021:i:1:p:98-125
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    More about this item

    Keywords

    Greek municipalities; efficiency; productivity; DEA; Malmquist analysis;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • P41 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Planning, Coordination, and Reform
    • P43 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Finance; Public Finance

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