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Measuring local government spending efficiency: Evidence for the Lisbon region

Author

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  • Antonio Afonso
  • Sonia Fernandes

Abstract

AFONSO A. and FERNANDES S. (2006) Measuring local government spending efficiency: evidence for the Lisbon region, Regional Studies 40, 39-53. The expenditure efficiency of Portuguese local governments in 2001 was assessed using Data Envelopment Analysis for production frontier estimation. A composite municipal output indicator was constructed and input and output efficiency scores were computed for 51 Portuguese municipalities in the region of Lisbon and Vale do Tejo. This allows a determination of the extent of municipal spending that seems to be 'wasted' relative to the theoretical 'best-practice' frontier. The results suggest that Vale do Tejo municipalities could achieve, on average, the same level of output allegedly using around one-third fewer resources, improving performance without necessarily increasing municipal spending. Municipal expenditure, Technical efficiency, Data Envelopment Analysis (DEA), Lisbon AFONSO A. and FERNANDES S. (2006) L'efficacite de la depense de l'administration locale: des preuves DEA pour la region de Lisbonne, Regional Studies 40, 39-53. A partir de la Data Envelopment Analysis quant a l'estimation de la frontiere de la production, on evalue l'efficacite de l' administration locale au Portugal en 2001. On construit une indice composite des sorties de la municipalite et, par la suite, on calcule des scores de l'efficacite des entrees et des sorties pour 51 municipalites portugaises dans region de Lisbonne et de Vale do Tejo. Cela permet la determination de l'importance de la depense municipale qui semble etre 'gaspillee' par rapport a la frontiere de 'la meilleure pratique' theorique. Les resultats laissent supposer que les municipalites de Vale do Tejo pourraient atteindre, en moyenne, le meme niveau de sorties en employant, pretendument, un tiers des ressources, ce qui permet une amelioration de la performance sans augmenter, necessairement, la depense municipale. Depenses municipales, Efficacite technique, Data Envelopment Analysis (DEA), Lisbonne AFONSO A. and FERNANDES S. (2006) Ausgaben Efficienz von Ortsverwaltungen: DEA-Beweise fur die Lissaboner Region, Regional Studies 40, 39-53. Die Ausgabenefficienz von portugiesischen Ortsverwaltungen im Jahre 2001 wird mit Hilfe einer DEA-Analyse fur Produktionsgrenzberechnungen beurteilt. Die Autoren konstruieren einen gegliedetenen Gemeindeaufwandsindikator, und berechnen Aufwands- und Ertragseffizienzspunkte fur 51 portugiesische Gemeinden in den Regionen von Lissabon und Vale do Tejo. Dies gestattet die Bestimmung des Ausmasses stadtischer Ausgaben, die, gemessen an der theoretischen bestmoglichen Praxisgrenze, anscheinend verschwendet werden. Die Ergebnisse legen nahe, dass Vale do Tejo im Durchschnitt die bei angeblich etwa 1/3 geringeren Aufwand die gleiche Ertragshohe erreichen und die Leistung also steigern konnten, ohne „unbedingt die Gemeindeausgaben zu erhohen. Gemeindeausgaben, technische Leistung, Data Envelopment Analysis (DEA), Lissabon AFONSO A. and FERNANDES S. (2006) Gestion eficaz del gasto publico por parte de gobiernos locales: Pruebas de AED para la region de Lisboa, Regional Studies 40, 39-53. En este ensayo analizamos en que medida los gobiernos portugueses locales gestionaron eficazmente el gasto publico en 2001. Para ello utilizamos el metodo de Analisis Envolvente de Datos (AED) con el objetivo de obtener una estimacion de produccion aplicable segun un valor limite. Asimismo construimos un indicador de rendimiento municipal compuesto y calculamos la puntuacion en funcion de la eficacia de entrada y de salida en 51 municipios portugueses de la region de Lisboa y Vale do Tejo. Esto nos permite determinar cual es el gasto municipal 'desperdiciado' con relacion al valor limite teorico de 'mejores metodos de trabajo'. Nuestros resultados indican que los municipios de Vale do Tejo supuestamente podrian obtener de promedio el mismo nivel de rendimiento utilizando un tercio menos de los recursos de modo que mejorasen el rendimiento sin tener que aumentar necesariamente el gasto municipal. Gasto publico municipal, Eficacia tecnica, Analisis Envolvente de Datos (AED), Lisboa

Suggested Citation

  • Antonio Afonso & Sonia Fernandes, 2006. "Measuring local government spending efficiency: Evidence for the Lisbon region," Regional Studies, Taylor & Francis Journals, vol. 40(1), pages 39-53.
  • Handle: RePEc:taf:regstd:v:40:y:2006:i:1:p:39-53
    DOI: 10.1080/00343400500449937
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    References listed on IDEAS

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    1. Alan B. Krueger, 1999. "Experimental Estimates of Education Production Functions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(2), pages 497-532.
    2. repec:fth:prinin:379 is not listed on IDEAS
    3. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    4. Bird,Richard M. & Vaillancourt,François (ed.), 1999. "Fiscal Decentralization in Developing Countries," Cambridge Books, Cambridge University Press, number 9780521641432.
    5. Alan Krueger, 1997. "Experimental Estimates of Education Production Functions," Working Papers 758, Princeton University, Department of Economics, Industrial Relations Section..
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