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Efficiency and Quality in Local Government Management. The case of Spanish Local Authotities

Author

Listed:
  • Maria Teresa Balaguer-Coll

    (Departament de Finances i Comptabilitat Universitat Jaume I.)

  • Diego Prior-Jiménez

    (Departament de Economia de la Empresa Universitat Autònoma de Barcelona.)

  • José Manuel Vela-Bargues

    (Departament de Finances i comptabilitat Universitat Jaume I.)

Abstract

This study analyses efficiency levels in Spanish local governments and their determining factors through the application of DEA(Data Envelopment Analysis) methodology. It aims to find out to what extent inefficiency arises from external factors beyond the control of the entity, or on the other hand, how much it is due to inadequate management of productive resources. The results show that on the whole, there is still a wide margin within which managers could increase local government efficiency levels, although it is revealed that a great deal of inefficiency is due to exogenous factors. It is specifically found that the size of the entity, per capita tax revenue, the per capita grants or the amount of commercial activity are some of the factors determining local government inefficiency.

Suggested Citation

  • Maria Teresa Balaguer-Coll & Diego Prior-Jiménez & José Manuel Vela-Bargues, 2002. "Efficiency and Quality in Local Government Management. The case of Spanish Local Authotities," Working Papers 0202, Departament Empresa, Universitat Autònoma de Barcelona, revised Feb 2002.
    • Handle: RePEc:bbe:wpaper:0202
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    Citations

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    Cited by:

    1. 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.
    2. Balaguer-Coll, Maria Teresa & Prior, Diego & Tortosa-Ausina, Emili, 2007. "On the determinants of local government performance: A two-stage nonparametric approach," European Economic Review, Elsevier, vol. 51(2), pages 425-451, February.
    3. Maria Nieswand & Stefan Seifert, 2011. "Some Determinants of Intermediate Local Governments' Spending Efficiency: The Case of French Départements," Discussion Papers of DIW Berlin 1130, DIW Berlin, German Institute for Economic Research.
    4. António Afonso & Ana Venâncio, 2016. "The relevance of commuting zones for regional spending efficiency," Applied Economics, Taylor & Francis Journals, vol. 48(10), pages 865-877, February.
    5. Dilber Çağlar Onbaşıoğlu, 2021. "The Turkish Cypriot Municipalities’ Productivity and Performance: An Application of Data Envelopment Analysis and the Tobit Model," JRFM, MDPI, vol. 14(9), pages 1-19, August.
    6. Heikki Loikkanen & Ilkka Susiluoton, 2000. "Cost Efficiency of Finnish Municipalities in Basic Service Provision 1994-2002," Regional and Urban Modeling 283600056, EcoMod.
    7. António Afonso & Ana Venâncio, 2022. "Local Property Tax Reform and Municipality Spending Efficiency," CESifo Working Paper Series 9538, CESifo.
    8. Francisca Pacheco & Rafael Sánchez & Mauricio G. Villena, 2021. "Estimating local government efficiency using a panel data parametric approach: the case of Chilean municipalities," Applied Economics, Taylor & Francis Journals, vol. 53(3), pages 292-314, January.
    9. Afonso, António & Fernandes, Sónia, 2008. "Assessing and explaining the relative efficiency of local government," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 1946-1979, October.
    10. António Afonso & Ana Venâncio, 2020. "Local territorial reform and regional spending efficiency," Local Government Studies, Taylor & Francis Journals, vol. 46(6), pages 888-910, November.
    11. Heikki A. Loikkanen & Ilkka Susiluoto, 2004. "Cost Efficiency of Finnish Municipalities 1994-2002. An Application of DEA and Tobit methods," ERSA conference papers ersa04p283, European Regional Science Association.
    12. Geys, Benny & Moesen, Wim, 2008. "Measuring local government technical (in)efficiency: An application and comparison of FDH, DEA and econometric approaches," Discussion Papers, Research Unit: Market Processes and Governance SP II 2008-21, WZB Berlin Social Science Center.
    13. repec:cuf:journl:y:2017:v:18:i:1:moreno-enguix is not listed on IDEAS
    14. Maria del Rocio Moreno-Enguix & Ester Gras-Gil & Joaquin Hernandez-Fernandez, 2017. "An Explanation of Management of Local Governments in Spain Based on the Structure of the Internal Control System," Annals of Economics and Finance, Society for AEF, vol. 18(2), pages 393-410, November.
    15. António Afonso & Sónia Fernandes, 2005. "Assessing and Explaining the Relative Efficiency of Local Government: Evidence for Portuguese Municipalities," Working Papers Department of Economics 2005/19, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.

    More about this item

    Keywords

    Local government performance; Data Envelopment Analysis; Efficiency and Quality.;
    All these keywords.

    JEL classification:

    • D60 - Microeconomics - - Welfare Economics - - - General
    • H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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