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Citizen Control and the Efficiency of Local Public Services

Author

Listed:
  • Núria Bosch
  • Marta Espasa
  • Toni Mora

    (Department of Economics, Universitat Internacional de Catalunya, and Institut d'Economia de Barcelona, Carrer de la Immaculada 22, 08017 Barcelona, Spain)

Abstract

It is generally accepted that fiscal decentralization increases citizen control over politicians, fostering accountability and increasing efficiency. We identify the socioeconomic characteristics of citizens that increase their control over local policy makers and thus generate greater efficiency in a decentralized context. We also highlight the fiscal characteristics that influence this control and efficiency. The study examines a sample of Spanish municipalities, applying a methodology based on the conventional procedure of two-stage estimation. The results provide a certain amount of empirical evidence that suggests that the strong presence of retailers and retired people favours citizen control, which fosters accountability and efficiency. A factor that facilitates this control, and therefore greater efficiency, is the presence of low opportunity costs for obtaining information regarding local public service management. We also demonstrate that a high level of taxation does not lead to greater control by citizens and that transfers generate the ‘flypaper effect’.

Suggested Citation

  • Núria Bosch & Marta Espasa & Toni Mora, 2012. "Citizen Control and the Efficiency of Local Public Services," Environment and Planning C, , vol. 30(2), pages 248-266, April.
    • Handle: RePEc:sae:envirc:v:30:y:2012:i:2:p:248-266
    DOI: 10.1068/c1153r
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    Cited by:

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    3. Cordero, José Manuel & Pedraja-Chaparro, Francisco & Pisaflores, Elsa C. & Polo, Cristina, 2016. "Efficiency assessment of Portuguese municipalities using a conditional nonparametric approach," MPRA Paper 70674, University Library of Munich, Germany.
    4. D’Inverno, Giovanna & Vidoli, Francesco & De Witte, Kristof, 2023. "Sustainable budgeting and financial balance: Which lever will you pull?," European Journal of Operational Research, Elsevier, vol. 309(2), pages 857-871.
    5. Isabel Narbón-Perpiñá & Maria Balaguer-Coll & Emili Tortosa-Ausina, 2019. "Evaluating local government performance in times of crisis," Local Government Studies, Taylor & Francis Journals, vol. 45(1), pages 64-100, January.
    6. D’Inverno, Giovanna & De Witte, Kristof, 2020. "Service level provision in municipalities: A flexible directional distance composite indicator," European Journal of Operational Research, Elsevier, vol. 286(3), pages 1129-1141.
    7. Isabel Narbón-Perpiñá & Mª Teresa Balaguer-Coll & Marko Petrovic & Emili Tortosa-Ausina, 2017. "Which estimator to measure local governments’ cost efficiency? An application to Spanish municipalities," Working Papers 2017/06, Economics Department, Universitat Jaume I, Castellón (Spain).
    8. Maria Teresa Balaguer‐Coll & Isabel Narbón‐Perpiñá & Jesús Peiró‐Palomino & Emili Tortosa‐Ausina, 2022. "Quality of government and economic growth at the municipal level: Evidence from Spain," Journal of Regional Science, Wiley Blackwell, vol. 62(1), pages 96-124, January.
    9. Jose M. Cordero & Francisco Pedraja-Chaparro & Elsa C. Pisaflores & Cristina Polo, 2017. "Efficiency assessment of Portuguese municipalities using a conditional nonparametric approach," Journal of Productivity Analysis, Springer, vol. 48(1), pages 1-24, August.
    10. Shi, Jiangang & Dai, Xingying & Duan, Kaifeng & Li, Jiajia, 2023. "Exploring the performances and determinants of public service provision in 35 major cities in China from the perspectives of efficiency and effectiveness," Socio-Economic Planning Sciences, Elsevier, vol. 85(C).
    11. Jose M. Cordero & Cristina Polo & Nickolaos G. Tzeremes, 2020. "Evaluating the efficiency of municipalities in the presence of unobserved heterogeneity," Journal of Productivity Analysis, Springer, vol. 53(3), pages 377-390, June.
    12. Enrique J. Buch‐Gómez & Roberto Cabaleiro‐Casal, 2020. "Turnout, political strength, and cost efficiency in Spanish municipalities of the autonomous region of Galicia: Evidence from an alternative stochastic frontier approach," Papers in Regional Science, Wiley Blackwell, vol. 99(3), pages 533-553, June.
    13. Jorge Garcia-Unanue & Jose Luis Felipe & Leonor Gallardo & Carlos Majano & Gemma Perez-Lopez, 2021. "Decentralisation and Efficiency in Municipal Sports Services: Expenditure vs. Cost," Sustainability, MDPI, vol. 13(4), pages 1-13, February.
    14. García, Israel & Hayo, Bernd, 2021. "Political budget cycles revisited: Testing the signalling process," European Journal of Political Economy, Elsevier, vol. 69(C).
    15. 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).
    16. Isabel Narbón-Perpiñá & Maria Teresa Balaguer-Coll & Diego Prior & Emili Tortosa-Ausina, 2021. "Searching for the optimal territorial structure: the case of Spanish provincial councils," Regional Studies, Taylor & Francis Journals, vol. 55(4), pages 645-664, April.
    17. Charmaine B. Distor & Odkhuu Khaltar, 2022. "What Motivates Local Governments to Be Efficient? Evidence from Philippine Cities," Sustainability, MDPI, vol. 14(15), pages 1-19, August.
    18. Francesco Aiello & Graziella Bonanno & Luigi Capristo, 2017. "Explaining Differences In Efficiency: The Case Of Local Government Literature," Working Papers 201704, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    19. Craig, Christopher A. & Allen, Myria W., 2014. "Enhanced understanding of energy ratepayers: Factors influencing perceptions of government energy efficiency subsidies and utility alternative energy use," Energy Policy, Elsevier, vol. 66(C), pages 224-233.
    20. Davide Luca, 2017. "Boon or bane for development? Turkey’s central state bureaucracy and the management of public investment," Environment and Planning C, , vol. 35(6), pages 939-957, September.
    21. Isabel Narbón-Perpiñá & Maria Teresa Balaguer-Coll & Marko Petrović & Emili Tortosa-Ausina, 2020. "Which estimator to measure local governments’ cost efficiency? The case of Spanish municipalities," SERIEs: Journal of the Spanish Economic Association, Springer;Spanish Economic Association, vol. 11(1), pages 51-82, March.
    22. Israel Garcia & Bernd Hayo, 2022. "The Influence of Politicians’ Sex on Political Budget Cycles: An Empirical Analysis of Spanish Municipalities," MAGKS Papers on Economics 202223, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).

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    More about this item

    Keywords

    cost efficiency; local governments; citizen's control; socioeconomic; fiscal variables;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue

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