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

Author

Listed:
  • 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)

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

  • María Teresa Balaguer-Coll & Diego Prior & José Manuel Vela-Bargues, 2002. "Efficiency and quality in local government management. The case of spanish local authorities," Working Papers 200202, Departament Empresa, Universitat Autònoma de Barcelona.
    • Handle: RePEc:bbe:wpaper:200202
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    File URL: http://selene.uab.es/dep-economia-empresa/documents/02-2.pdf
    File Function: First version, 2002
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    Cited by:

    1. 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.

    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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