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Efficiency Measurement in the Local Public Sector: Econometric and Mathematical Programming Frontier Techniques

  • Andrew Worthington
  • Brian Dollery

Local government in advanced economies is undergoing a period of rapid reform aimed at enhancing its efficiency and effectiveness. Accordingly, the definition, measurement and improvement of organisational performance is crucial. Despite the importance of efficiency measurement in local government it is only relatively recently that econometric and mathematical frontier techniques have been applied to local public services. This paper attempts to provide a synoptic survey of the comparatively few empirical analyses of efficiency measurement in local government. We examine both the measurement of inefficiency in local public services and the determinants of local public sector efficiency. The implications of efficiency measurement for practitioners in local government are examined by way of conclusion.

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Paper provided by School of Economics and Finance, Queensland University of Technology in its series School of Economics and Finance Discussion Papers and Working Papers Series with number 078.

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Date of creation: 20 Aug 2000
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Handle: RePEc:qut:dpaper:078
Contact details of provider: Postal: GPO Box 2434, BRISBANE QLD 4001
Web page: http://www.bus.qut.edu.au/faculty/economics/
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  1. DE BORGER, Bruno & KERSTENS, K. & MOESEN, Wim & VANNESTE, Jacques, 1992. "Explaining differences in productive efficiency: An application to Belgian municipalities," SESO Working Papers 1992003, University of Antwerp, Faculty of Applied Economics.
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  7. Andrew Worthington, 1999. "Performance Indicators and Efficiency Measurement in Public Libraries," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 32(1), pages 31-42.
  8. Deller, Steven C, 1992. "Production Efficiency in Local Government: A Parametric Approach," Public Finance = Finances publiques, , vol. 47(1), pages 32-44.
  9. Bjurek, Hans & Hjalmarsson, Lennart & Forsund, Finn R., 1990. "Deterministic parametric and nonparametric estimation of efficiency in service production : A comparison," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 213-227.
  10. Steven C. Deller & John M. Halstead, 1994. "Efficiency in the Production of Rural Road Services: The Case of New England Towns," Land Economics, University of Wisconsin Press, vol. 70(2), pages 247-259.
  11. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
  12. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181, March.
  13. Deller, Steven C & Rudnicki, Edward, 1992. " Managerial Efficiency in Local Government: Implications on Jurisdictional Consolidation," Public Choice, Springer, vol. 74(2), pages 221-31, September.
  14. Dollery, Brian E & Worthington, Andrew C, 1996. " The Empirical Analysis of Fiscal Illusion," Journal of Economic Surveys, Wiley Blackwell, vol. 10(3), pages 261-97, September.
  15. Bjurek, Hans & Kjulin, Urban & Gustafsson, Bjorn, 1992. " Efficiency, Productivity and Determinants of Inefficiency at Public Day Care Centers in Sweden," Scandinavian Journal of Economics, Wiley Blackwell, vol. 94(0), pages S173-87, Supplemen.
  16. Rajiv D. Banker & Richard C. Morey, 1986. "The Use of Categorical Variables in Data Envelopment Analysis," Management Science, INFORMS, vol. 32(12), pages 1613-1627, December.
  17. Cook, Wade D. & Kazakov, Alex & Roll, Yaakov & Seiford, Lawrence M., 1991. "A data envelopment approach to measuring efficiency: Case analysis of highway maintenance patrols," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 20(1), pages 83-103.
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