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Efficiency and quality in local government management. The case of spanish local authorities

  • María Teresa Balaguer-Coll

    (Departament de Finances i Comptabilitat, Universitat Jaume I)

  • Diego Prior


    (Departament d'Economia de l'Empresa, Universitat Autonoma de Barcelona)

  • José Manuel Vela-Bargues

    (Departament de Finances i Comptabilitat, Universitat Jaume I)

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.

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Paper provided by Department of Business Economics, Universitat Autonoma de Barcelona in its series Working Paper with number 200202.

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Date of creation: Feb 2002
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Handle: RePEc:bbe:wpaper:200202
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