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Short- and long-term evaluation of efficiency and quality. An application to Spanish municipalities

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  • M. Teresa Balaguer-Coll
  • Diego Prior

Abstract

This article analyses efficiency and quality levels in Spanish local governments and their determining factors through the application of the Data Envelopment Analysis methodology. It aims to discover to what extent inefficiency arises from both quality considerations and external factors beyond the organization's control, or alternatively, how much inefficiency is due to inadequate resource management. As a component of inadequate resource management, we test the existence of political-budgetary cycles in the temporal evolution of inefficiencies. The results show that on the whole there is still a wide margin within which local government efficiency and quality levels could be increased, although it is revealed that a great deal of inefficiency is due to exogenous or noncontrollable factors. In particular, it has been found that the size of the municipality, the per capita tax revenue, the per capita grants and the amount of commercial activity are some of the factors related with local government efficiency.

Suggested Citation

  • M. Teresa Balaguer-Coll & Diego Prior, 2009. "Short- and long-term evaluation of efficiency and quality. An application to Spanish municipalities," Applied Economics, Taylor & Francis Journals, vol. 41(23), pages 2991-3002.
  • Handle: RePEc:taf:applec:v:41:y:2009:i:23:p:2991-3002
    DOI: 10.1080/00036840701351923
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    Citations

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    Cited by:

    1. Bischoff, Ivo & Bönisch, Peter & Haug, Peter & Illy, Annette, 2014. "Vertical Grants and Local Public Efficiency," IWH Discussion Papers 1/2013, Halle Institute for Economic Research (IWH).
    2. repec:kap:jproda:v:48:y:2017:i:1:d:10.1007_s11123-017-0500-z is not listed on IDEAS
    3. 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.
    4. 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.
    5. da Cruz, Nuno Ferreira & Marques, Rui Cunha, 2014. "Revisiting the determinants of local government performance," Omega, Elsevier, vol. 44(C), pages 91-103.
    6. 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).
    7. Isabel Narbón-Perpiñá & Mª Teresa Balaguer-Coll & Emili Tortosa-Ausina, 2017. "Evaluating local government performance in times of crisis," Working Papers 2017/05, Economics Department, Universitat Jaume I, Castellón (Spain).
    8. Haug, Peter, 2013. "Grant Dependence, Regulation and the Effects of Formula-based Grant Systems on German Local Governments: A Data Report for Saxony-Anhalt," IWH Discussion Papers 2/2013, Halle Institute for Economic Research (IWH).
    9. 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.
    10. 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).
    11. 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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