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Explaining differences in efficiency: an application to Spanish municipalities

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  • Bernardino Benito
  • Francisco Bastida
  • Jose Garcia

Abstract

This article, investigates efficiency in the municipal sector of the Region of Murcia (Spain). With that aim, data of 31 municipalities (69% of the response rate) have been collected. Services analysed are: police, culture, sports, green areas, refuse collection and water supply. Ratios of efficiency have been related to other control variables, such as economic level, size of the municipality, decentralization, political sign and financial situation. A weak positive relation between economic level and efficiency arises. Some weak evidence also exists that public management of refuse collection is more efficient than private. In water supply, public management by means of a company controlled by the local government is clearly more efficient than private. It also seems that the higher the tax burden, the greater the efficiency in providing services.

Suggested Citation

  • Bernardino Benito & Francisco Bastida & Jose Garcia, 2010. "Explaining differences in efficiency: an application to Spanish municipalities," Applied Economics, Taylor & Francis Journals, vol. 42(4), pages 515-528.
  • Handle: RePEc:taf:applec:v:42:y:2010:i:4:p:515-528
    DOI: 10.1080/00036840701675560
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    References listed on IDEAS

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    1. Waldo, Staffan, 2000. "Municipalities as Educational Producers - An Efficiency Approach," Working Papers 2000:19, Lund University, Department of Economics, revised 19 Dec 2001.
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    Cited by:

    1. Michael Zschille & Matthias Walter, 2012. "The performance of German water utilities: a (semi)-parametric analysis," Applied Economics, Taylor & Francis Journals, vol. 44(29), pages 3749-3764, October.
    2. Li, Li, 2018. "Private sector participation and performance of county water utilities in China," China Economic Review, Elsevier, vol. 52(C), pages 30-53.
    3. lo Storto, Corrado, 2020. "Performance evaluation of social service provision in Italian major municipalities using Network Data Envelopment Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    4. 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.
    5. Fusco, Elisa & Allegrini, Veronica, 2020. "The role of spatial interdependence in local government cost efficiency: An application to waste Italian sector," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    6. Bernardino Benito & José Solana & María-Rocío Moreno, 2014. "Explaining efficiency in municipal services providers," Journal of Productivity Analysis, Springer, vol. 42(3), pages 225-239, December.
    7. Cuadrado-Ballesteros, Beatriz & García-Sánchez, Isabel-María & Prado-Lorenzo, José-Manuel, 2013. "Effect of modes of public services delivery on the efficiency of local governments: A two-stage approach," Utilities Policy, Elsevier, vol. 26(C), pages 23-35.
    8. Andrés Navarro-Galera & Francisco José Alcaraz-Quiles & David Ortiz-Rodriguez, 2018. "Enhancing Sustainability Transparency in Local Governments—An Empirical Research in Europe," Sustainability, MDPI, Open Access Journal, vol. 10(7), pages 1-22, June.
    9. 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).
    10. Pérez-López, Gemma & Prior, Diego & Zafra-Gómez, José L., 2018. "Temporal scale efficiency in DEA panel data estimations. An application to the solid waste disposal service in Spain," Omega, Elsevier, vol. 76(C), pages 18-27.
    11. Juan Gómez-García & María del Rocio Moreno Enguix & Juan Cándido Gómez-Gallego, 2011. "Estimation Of The Efficiency Of Structural Funds: A Parametric And Non-Parametric Approach," Post-Print hal-00712385, HAL.
    12. E. Dijkgraaf & R. Gradus, 2011. "Efficiency Effects of Privatising Refuse Collection: Be careful and Alternatives present," Tinbergen Institute Discussion Papers 11-156/3, Tinbergen Institute.
    13. Managi, Shunsuke & Hibiki, Akira & Shimane, Tetsuya, 2014. "Efficiency or technology adoption: A case study in waste-treatment technology," Resource and Energy Economics, Elsevier, vol. 36(2), pages 586-600.
    14. Marta Suárez-Varela & María los Ángeles García-Valiñas & Francisco González-Gómez & Andrés J Picazo-Tadeo, 2017. "Ownership and Performance in Water Services Revisited: Does Private Management Really Outperform Public?," Water Resources Management: An International Journal, Published for the European Water Resources Association (EWRA), Springer;European Water Resources Association (EWRA), vol. 31(8), pages 2355-2373, June.
    15. Martin Ardanaz & Stanislao Maldonado, 2016. "Natural Resource Windfalls and Efficiency of Local Government Expenditures: Evidence from Peru," Documentos de Trabajo 014578, Universidad del Rosario.
    16. Ana Elena IOSIF, 2014. "Public - private interdependence: an effective tool in water supply services," EuroEconomica, Danubius University of Galati, issue 2(33), pages 19-35, November.
    17. 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.
    18. Isabel Narbón-Perpiñá & Diego Prior & Mª Teresa Balaguer-Coll & Emili Tortosa-Ausina, 2019. "Searching for the optimal territorial structure: The case of Spanish provincial councils," Working Papers 2019/03, Economics Department, Universitat Jaume I, Castellón (Spain).
    19. Francesco Aiello & Graziella Bonanno, 2019. "Explaining Differences In Efficiency: A Meta‐Study On Local Government Literature," Journal of Economic Surveys, Wiley Blackwell, vol. 33(3), pages 999-1027, July.
    20. 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.
    21. 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).
    22. Maria Basílio & Clara Pires & Carlos Borralho & José Pires Reis, 2020. "Local government efficiency: is there anything new after Troika’s intervention in Portugal?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 309-332, June.

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