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Decentralization And Effiency In Spanish Local Goverment

  • Emili Tortosa Ausina

    ()

    (Universitat Jaume I)

  • Diego Prior

    (Universidad Autónoma de Barcelona)

  • María Teresa Balaguer-Coll

    (Universitat Jaume I)

This study analyzes the links between efficiency and the decentralization of competencies among Spanish local governments for years 1995 and 2000. The aim is pursued by considering a two-stage activity analysis model in which the performance of eachmunicipality is first evaluated against other municipalities with a similar level of competencies and, in a second stage, it is compared with that of other municipalities for which decentralization remains at a more preliminary stage. The model also considers an index aimed at measuring whether tendencies towards higher (or lower) benefits from decentralization might exist over time. Results suggest that some municipalities could manage their resources more efficiently if bestowed on more competencies. Although this sort of decentralization economies do not emerge for all municipalities, their magnitude clearly overshadows the diseconomies found if downscaling of decision making went too far and least decentralized municipalities were conferred on more competencies. In addition, the likely efficiency gains from enhanceddecentralization increase over time. El objetivo de este trabajo es analizar los vínculos entre eficiencia y descentralización de competencias para los ayuntamientos españoles durante los años 1995 y 2000. Para ello, se considera un modelo de análisis de la actividad en dos etapas en el que, en primer lugar, la eficiencia de cada municipio se evalúa frente a la de otros municipios con un mismo nivel de competencias y, en una segunda etapa, se compara con el de aquellos municipios para los cuales la descentralización de competencias permanece en un nivel inferior. El modelo también considera un índice que mide si hay tendencias hacia mayor -o menor- beneficios de la descentralización a lo largo del tiempo. Los resultados indican que algunos municipios podrían gestionar sus recursos más eficientemente de tener un mayor nivel de competencias. Aunqueeste tipo de economías de descentralización no existen para todos los municipios, su magnitud es superior a la magnitud de las deseconomías que se dan para otros municipios. Asimismo, lasganancias de eficiencia obtenidas de una hipotética descentralización aumentan con el tiempo.

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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2006-02.

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Length: 40 pages
Date of creation: Feb 2006
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2006-02
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  1. Molero, Juan Carlos, 2001. "Analysis Of The Decentralization Of Public Spending In Spain," MPRA Paper 8056, University Library of Munich, Germany.
  2. Walter Briec & Kristiaan Kerstens & Philippe Vanden Eeckaut, 2006. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity (Journal of Economics 81(2):155–192)," Journal of Economics, Springer, vol. 87(3), pages 307-308, 04.
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  16. Léopold Simar & Paul Wilson, 2000. "Statistical Inference in Nonparametric Frontier Models: The State of the Art," Journal of Productivity Analysis, Springer, vol. 13(1), pages 49-78, January.
  17. Emili Tortosa Ausina & Diego Prior & María Teresa Balaguer-Coll, 2004. "On The Determinants Of Local Government Performance: A Two-Stage Nonparametric Approach," Working Papers. Serie EC 2004-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
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  27. repec:cup:etheor:v:10:y:1994:i:2:p:316-56 is not listed on IDEAS
  28. Walter Briec & Kristiaan Kerstens & Philippe Venden Eeckaut, 2004. "Non-convex Technologies and Cost Functions: Definitions, Duality and Nonparametric Tests of Convexity," Journal of Economics, Springer, vol. 81(2), pages 155-192, 02.
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