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Reducing the Administrative Expenditures as Source for Increasing the Efficiency of Local Governance under Conditions of the Financial Crisis

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  • Matei, Ani
  • Matei, Lucica

Abstract

In the last 10-15 years the preoccupation concerning administrative expenses were expressed in concrete initiatives. The networks concerning Standard Costs Model (SCM) are worth mentioning for reducing administrative expenses in private business area. European Commission elaborated and is currently implementing a strategy for reducing administrative costs for business inside EU. Similar initiatives can be found at OECD, World Bank and in numerous other European states, and not only, such as USA, UK, Denmark, Netherlands, Sweden, Norway and others. Financial crisis emphasized the preoccupation for administrative expenses reduction. The analysis and measurements focus was transferred towards public business area where most of the states proposed short term strategies to reduce the mentioned expenses. In this context, the strategies comprised all governance levels were expressed in concrete measures to reduce administrative expenses for administrative structure and local public services etc. In many of the situations, the resulted sums from the administrative expenses reductions were redirected towards production process concluding in the maintaining of public service production and increasing its efficiency related to workforce. In this context, the present paper aims to generate economic models that determine the influence of administrative expenses reduction on public services efficiency and, based on these, to formulate conclusions on local governance efficiency

Suggested Citation

  • Matei, Ani & Matei, Lucica, 2010. "Reducing the Administrative Expenditures as Source for Increasing the Efficiency of Local Governance under Conditions of the Financial Crisis," Apas Papers 150, Academic Public Administration Studies Archive - APAS.
  • Handle: RePEc:nsu:apasro:150
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    File URL: http://www.apas.admpubl.snspa.ro/handle/2010/169
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    References listed on IDEAS

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    1. Ani Matei & Lucica Matei & Teodora Dinu, 2009. "Marketing of Local Public Services under the Reduction of Administrative Expenditures," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 3(03(532)), pages 07-28, March.
    2. Eric Miller, 2008. "An Assessment of CES and Cobb-Douglas Production Functions: Working Paper 2008-05," Working Papers 19992, Congressional Budget Office.
    3. Saunders, Peter, 1985. "Public Expenditure and Economic Performance in OECD Countries," Journal of Public Policy, Cambridge University Press, vol. 5(01), pages 1-21, February.
    4. Gilles Mourre, 2009. "Underutilisation of Labour in (Continental Western) Europe: A Detailed GDP Accounting Perspective," Working Papers CEB 09-050.RS, ULB -- Universite Libre de Bruxelles.
    5. Rainer Klump & Peter McAdam & Alpo Willman, 2007. "The long-term sucCESs of the neoclassical growth model," Oxford Review of Economic Policy, Oxford University Press, vol. 23(1), pages 94-114, Spring.
    6. Gheorghe Zaman & Zizi Goschin, 2007. "Elasticity of Substitution for Production Functions in Romania and other Countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 2(2(507)), pages 3-12, February.
    7. George Gelauff & Arjan Lejour, 2006. "Five Lisbon highlights; the economic impact of reaching these targets," CPB Document 104, CPB Netherlands Bureau for Economic Policy Analysis.
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    Citations

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    Cited by:

    1. Jacopo Torriti & Eka Ikpe, 2015. "Administrative costs of regulation and foreign direct investment: the Standard Cost Model in non-OECD countries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 151(1), pages 127-144, February.
    2. Matei, Ani & Matei, Lucica, 2011. "Knowledge Marketing and Development in the new Knowledge-based Economy," Apas Papers 333, Academic Public Administration Studies Archive - APAS.

    More about this item

    Keywords

    reducing the administrative expenditures; financial crisis; efficiency; local governance;

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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