Assessing and explaining the relative efficiency of local government
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 m...
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| Format: | article |
| Language: | eng |
| Published: |
2022
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| Online Access: | http://hdl.handle.net/10400.5/25632 |
| Country: | Portugal |
| Oai: | oai:www.repository.utl.pt:10400.5/25632 |
| Summary: | 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. |
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