1. Assessing and explaining the relative efficiency of local government
- Author
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Afonso, António and Fernandes, Sónia
- Subjects
- *
MUNICIPAL government , *ECONOMIC impact , *DATA envelopment analysis , *PUBLIC spending , *SOCIAL impact , *SOCIOECONOMIC factors , *LOCAL government - Abstract
Abstract: We assess the relative efficiency of local municipalities using Data Envelopment Analysis and parametric analysis. As an output measure we compute a composite local government indicator of municipal performance, using data for Portuguese municipalities. This allows assessing the extent of possible municipal improvement relative to the “best-practice” frontier. Our results suggest that most municipalities could improve performance without necessarily increasing municipal spending. In a second stage efficiency scores are explained by means of a Tobit analysis with a set of relevant explanatory socio-economic factors playing the role of non-discretionary inputs, such as education and per capita purchasing power. [Copyright &y& Elsevier]
- Published
- 2008
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