IDEAS home Printed from https://ideas.repec.org/p/upf/upfgen/439.html
   My bibliography  Save this paper

Radial measures of public services deficit for regional allocation of public funds

Author

Abstract

The goal of this paper is to present an optimal resource allocation model for the regional allocation of public service inputs. The proposed solution leads to maximise the relative public service availability in regions located below the best availability frontier, subject to exogenous budget restrictions and equality of access for equal need criteria (equity-based notion of regional needs). The construction of non-parametric deficit indicators is proposed for public service availability by a novel application of Data Envelopment Analysis (DEA) models, whose results offer advantages for the evaluation and improvement of decentralised public resource allocation systems. The method introduced in this paper has relevance as a resource allocation guide for the majority of services centrally funded by the public sector in a given country, such as health care, basic and higher education, citizen safety, justice, transportation, environmental protection, leisure, culture, housing and city planning, etc.

Suggested Citation

  • Jaume Puig, 1999. "Radial measures of public services deficit for regional allocation of public funds," Economics Working Papers 439, Department of Economics and Business, Universitat Pompeu Fabra.
    • Handle: RePEc:upf:upfgen:439
    as

    Download full text from publisher

    File URL: https://econ-papers.upf.edu/papers/439.pdf
    File Function: Whole Paper
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Herrero, Carmen & Marco, Maria Carmen, 1993. "Rational equal-loss solutions for bargaining problems," Mathematical Social Sciences, Elsevier, vol. 26(3), pages 273-286, November.
    2. GIJBELS, Irène & MAMMEN, Enno & PARK, Byeong U. & SIMAR, Léopold, 1997. "On estimation of monotone and concave frontier functions," LIDAM Discussion Papers CORE 1997031, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    3. C. Lovell & Shawna Grosskopf & Eduardo Ley & Jesús Pastor & Diego Prior & Philippe Eeckaut, 1994. "Linear programming approaches to the measurement and analysis of productive efficiency," TOP: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer;Sociedad de Estadística e Investigación Operativa, vol. 2(2), pages 175-248, December.
    4. Roy Carr-Hill & Geoffrey Hardman & Stephen Martin & Stuart Peacock & Trevor Sheldon & Peter Smith, 1994. "A formula for distributing NHS revenues based on small area use of hospital beds," Working Papers 022cheop, Centre for Health Economics, University of York.
    5. Javier Ruiz-Castillo, 1995. "Income distribution and social welfare: a review essay," Investigaciones Economicas, Fundación SEPI, vol. 19(1), pages 3-34, January.
    6. A Bosch-Domènech & C Escribano, 1988. "Regional Allocation of Public Funds: An Evaluation Index," Environment and Planning A, , vol. 20(10), pages 1323-1333, October.
    7. Jaume Puig Junoy & Angel Lopez Nicoĺs, 1995. "Assessing health care infrastructure at the regional level: a statistical approach," Applied Economics Letters, Taylor & Francis Journals, vol. 2(12), pages 463-466.
    8. Bossert, Walter, 1993. "An alternative solution to bargaining problems with claims," Mathematical Social Sciences, Elsevier, vol. 25(3), pages 205-220, May.
    9. del Carmen Marco Gil, M., 1995. "Efficient solutions for bargaining problems with claims," Mathematical Social Sciences, Elsevier, vol. 30(1), pages 57-69, August.
    10. Dutta, B. & Esteban, J., 1988. "Social Welfare And Equality," UFAE and IAE Working Papers 89.88, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    11. Korostelev, A. P. & Simar, L. & Tsybakov, A. B., 1995. "Estimation of monotone boundaries," LIDAM Reprints CORE 1178, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    12. A. Charnes & W. W. Cooper, 1962. "Programming with linear fractional functionals," Naval Research Logistics Quarterly, John Wiley & Sons, vol. 9(3‐4), pages 181-186, September.
    13. R. D. Banker & A. Charnes & W. W. Cooper, 1984. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis," Management Science, INFORMS, vol. 30(9), pages 1078-1092, September.
    14. Atkinson, Anthony B., 1970. "On the measurement of inequality," Journal of Economic Theory, Elsevier, vol. 2(3), pages 244-263, September.
    15. José María Tomás Adrian & Antonio Villar, 1993. "La medición del bienestar mediante indicadores de renta real: caracterización de un índice de bienestar tipo Theil," Investigaciones Economicas, Fundación SEPI, vol. 17(1), pages 165-173, January.
    16. Korostelev, A.P. & Simar , L. & Tsybakov, A.B., 1995. "On estimation of monotone and convex boundaries," LIDAM Reprints CORE 1139, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    17. Rajiv D. Banker, 1993. "Maximum Likelihood, Consistency and Data Envelopment Analysis: A Statistical Foundation," Management Science, INFORMS, vol. 39(10), pages 1265-1273, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gasparini, Carlos Eduardo & Ramos, Francisco S., 2004. "Relative deficit of health services in Brazilian states and regions," Brazilian Review of Econometrics, Sociedade Brasileira de Econometria - SBE, vol. 24(1), May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jaume Puig, 1999. "Radial measures of public services deficit for regional allocation of public funds," Working Papers, Research Center on Health and Economics 439, Department of Economics and Business, Universitat Pompeu Fabra.
    2. Zelenyuk, Valentin, 2020. "Aggregation of inputs and outputs prior to Data Envelopment Analysis under big data," European Journal of Operational Research, Elsevier, vol. 282(1), pages 172-187.
    3. Alois Kneip & Léopold Simar & Paul Wilson, 2011. "A Computationally Efficient, Consistent Bootstrap for Inference with Non-parametric DEA Estimators," Computational Economics, Springer;Society for Computational Economics, vol. 38(4), pages 483-515, November.
    4. Kneip, Alois & Simar, Léopold & Wilson, Paul W., 2008. "Asymptotics And Consistent Bootstraps For Dea Estimators In Nonparametric Frontier Models," Econometric Theory, Cambridge University Press, vol. 24(6), pages 1663-1697, December.
    5. Prasanta Kumar Dey & Guo-liang Yang & Chrysovalantis Malesios & Debashree De & Konstantinos Evangelinos, 2021. "Performance Management of Supply Chain Sustainability in Small and Medium-Sized Enterprises Using a Combined Structural Equation Modelling and Data Envelopment Analysis," Computational Economics, Springer;Society for Computational Economics, vol. 58(3), pages 573-613, October.
    6. Jesús T. Pastor & JosÉ L. Ruiz & Inmaculada Sirvent, 2002. "A Statistical Test for Nested Radial Dea Models," Operations Research, INFORMS, vol. 50(4), pages 728-735, August.
    7. Chiang Kao & Shiang-Tai Liu, 2022. "Stochastic efficiencies of network production systems with correlated stochastic data: the case of Taiwanese commercial banks," Annals of Operations Research, Springer, vol. 315(2), pages 1151-1174, August.
    8. Kao, Chiang & Liu, Shiang-Tai, 2009. "Stochastic data envelopment analysis in measuring the efficiency of Taiwan commercial banks," European Journal of Operational Research, Elsevier, vol. 196(1), pages 312-322, July.
    9. José Solana‐Ibáñez & Manuel Caravaca‐Garratón & Ricardo Teruel‐Sánchez, 2020. "Stakeholder perception on corporate reputation and management efficiency: Evidence from the Spanish Defence sector," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(5), pages 2381-2399, September.
    10. Rolf Färe & Valentin Zelenyuk, 2021. "Sequential data envelopment analysis," Annals of Operations Research, Springer, vol. 300(1), pages 307-312, May.
    11. Rolf Färe & Valentin Zelenyuk, 2019. "Data Envelopment Analysis and Sequences in Hilbert Spaces," CEPA Working Papers Series WP132019, School of Economics, University of Queensland, Australia.
    12. Olesen, Ole B. & Petersen, Niels Christian, 2016. "Stochastic Data Envelopment Analysis—A review," European Journal of Operational Research, Elsevier, vol. 251(1), pages 2-21.
    13. Nasrabadi, Nasim & Dehnokhalaji, Akram & Korhonen, Pekka & Lokman, Banu & Wallenius, Jyrki, 2022. "Robustness of efficiency scores in data envelopment analysis with interval scale data," European Journal of Operational Research, Elsevier, vol. 297(3), pages 1151-1161.
    14. Pastor, Jesus T. & Ruiz, Jose L. & Sirvent, Inmaculada, 1999. "A statistical test for detecting influential observations in DEA," European Journal of Operational Research, Elsevier, vol. 115(3), pages 542-554, June.
    15. Timo Kuosmanen & Andrew L. Johnson, 2010. "Data Envelopment Analysis as Nonparametric Least-Squares Regression," Operations Research, INFORMS, vol. 58(1), pages 149-160, February.
    16. William C. Horrace & Peter Schmidt, 2002. "Confidence Statements for Efficiency Estimates from Stochastic Frontier Models," Econometrics 0206006, University Library of Munich, Germany.
    17. Michali, Maria & Emrouznejad, Ali & Dehnokhalaji, Akram & Clegg, Ben, 2023. "Subsampling bootstrap in network DEA," European Journal of Operational Research, Elsevier, vol. 305(2), pages 766-780.
    18. Hall, Peter & Park, Byeong U., 2004. "Bandwidth choice for local polynomial estimation of smooth boundaries," Journal of Multivariate Analysis, Elsevier, vol. 91(2), pages 240-261, November.
    19. Sergio Destefanis & Vania Sena, 2007. "Patterns of corporate governance and technical efficiency in Italian manufacturing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(1), pages 27-40.
    20. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.

    More about this item

    Keywords

    Regional allocation; public services; equality of access; data envelopment analysis; best service availability frontier;
    All these keywords.

    JEL classification:

    • H4 - Public Economics - - Publicly Provided Goods
    • D6 - Microeconomics - - Welfare Economics
    • I1 - Health, Education, and Welfare - - Health

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upf:upfgen:439. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: the person in charge (email available below). General contact details of provider: http://www.econ.upf.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.