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Exploring sources of local government technical inefficiency: evidence from Flemish municipalities
[Ursachenforschung zur technischen Ineffizienz kommunaler Verwaltungen: Evidenz von flämischen Gemeindeverwaltungen]

  • Geys, Benny
  • Moesen, Wim

The present paper explores sources of technical (in)efficiency of Flemish municipalities in their production of local public goods (in the year 2000). In assessing inefficiency derivation, we focus on socio-economic and political characteristics of the municipalities as potential source. Our main findings indicate that while the socio-economic make-up of the population (i.c. income, income inequality, education and unemployment) appears to bear little relation to local (in)efficiency, the reverse holds for the municipal financial situation (i.c. grants, historical debt and fiscal surplus) as well as population size and density. Also, different types of communities – i.e. agricultural, residential, industrial, touristic or urbanised – are generally found to achieve comparable performance levels in providing ‘core’ public services. While indicative, the limitations of our dataset imply that further work is vital before definitive conclusions (as well as causal inferences) can be made.

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Paper provided by Social Science Research Center Berlin (WZB) in its series Discussion Papers, Research Unit: Market Processes and Governance with number SP II 2008-18.

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Date of creation: 2008
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Handle: RePEc:zbw:wzbmpg:spii200818
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  15. Ana Faria & Paul Fenn & Alistair Bruce, 2005. "Production technologies and technical efficiency: evidence from Portuguese manufacturing industry," Applied Economics, Taylor & Francis Journals, vol. 37(9), pages 1037-1046.
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