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Measuring Global Municipal Performance in Heterogeneous Contexts: A Semi-nonparametric Frontier Approach

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Advances in Efficiency and Productivity II

Part of the book series: International Series in Operations Research & Management Science ((ISOR,volume 287))

Abstract

Improving the efficiency and effectiveness of public services and at the same time reducing public deficit have become an important concern in the public sector. Undoubtedly, local governments could benefit from adhering to these objectives. They play an important role in providing public goods and services to citizens in many countries, since they are the closest political level to the population and their needs. Moreover, local authorities and public managers are increasingly under pressure to conform to the standards demanded by the general public in terms of both quantity and quality. Nevertheless, the resources to fulfill the demand for more and better local public services are scarce, especially after the cutbacks and debt constraints imposed by the economic and financial crisis. In this framework, the assessment of municipal efficiency has become a very important factor in providing additional guidance for policy makers worldwide.

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Notes

  1. 1.

    According to the National Law that regulates the competencies attributed to the municipalities, this group of municipalities includes two levels of competencies powers divided as follows: local governments with a population from 5000 to 20,000 inhabitants and local governments with a population from 20,000 to 50,000 inhabitants, but the divergences are minimal.

  2. 2.

    Narbón-Perpiñá and De Witte (2018a, b) provide a recent and detailed review of those empirical contributions.

  3. 3.

    Although this variable is not a direct output, most empirical studies include it in their models (e.g., Afonso and Fernandes 2006; Balaguer et al. 2007; Balaguer and Prior 2009; De Borger and Kerstens 1996a; Geys et al. 2010; Giménez and Prior 2007).

  4. 4.

    Aiello and Bonanno (2018) perform a meta-regression analysis using data from a substantial number of studies and quantify the impact of potential sources of heterogeneity on local government efficiency.

  5. 5.

    Kuosmanen and Johnson (2010) show that this problem is equivalent to the standard (output-oriented, variable returns to scale) DEA model when a sign constraint on residuals is incorporated to the formulation (ε i ≤ 0 ∀ i) and considering the problem subject to shape constraints (monotonicity and convexity).

  6. 6.

    The Infrastructure and Local Equipment Survey provides information for municipalities with a population of less than 50,000 inhabitants. Unfortunately, information on the Catalan municipalities for the years 2006, 2007, and 2012 is missing from this database. On this ground, we were obliged to impute the values for the above years based on the information from adjacent years. In fact, for 2006 and 2007, we calculated moving averages using information with respect to 2005, 2008, and 2009, whereas, for 2012, we projected the value according to the average annual growth rate for 2010 and 2011.

  7. 7.

    The component values were rescaled by adding the maximum negative value to all the values to assure that the variable values accounted for in the model are all positive.

  8. 8.

    The variable used is outstanding local authority debt as of 31/12 of the current year according to the Public Finance and Debt System.

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Acknowledgments

The authors would like to express their gratitude to the Regional Government of Extremadura (Junta de Extremadura) for supporting this research through grants IB16171 and GR18106. Carlos Díaz-Caro would also like to acknowledge the funding received from the Institute of Economics of Barcelona (IEB) and the Provincial Government of Barcelona through the Catalan Local Government Research Aid.

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Authors and Affiliations

  1. Universidad de Extremadura, Badajoz, Spain

    José Manuel Cordero

  2. Universidad de Extremadura, Cáceres, Spain

    Carlos Díaz-Caro

  3. Universidad de Extremadura, Plasencia, Spain

    Cristina Polo

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  1. José Manuel Cordero
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Correspondence to José Manuel Cordero .

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Editors and Affiliations

  1. Center of Operations Research, Miguel Hernandez University, Elche, Alicante, Spain

    Juan Aparicio

  2. School of Economics, University of Queensland, Brisbane, QLD, Australia

    C. A. Knox Lovell

  3. Center of Operations Research, Miguel Hernandez University, Elche, Alicante, Spain

    Jesus T. Pastor

  4. Foisie Business School, Worcester Polytechnic Institute, Worcester, MA, USA

    Joe Zhu

Appendix

Appendix

Table A1 Rank of municipalities according to their efficiencies estimated with StoNEZD
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Table A1 (continued)
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Table A.1 (continued)
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Cordero, J.M., Díaz-Caro, C., Polo, C. (2020). Measuring Global Municipal Performance in Heterogeneous Contexts: A Semi-nonparametric Frontier Approach. In: Aparicio, J., Lovell, C., Pastor, J., Zhu, J. (eds) Advances in Efficiency and Productivity II. International Series in Operations Research & Management Science, vol 287. Springer, Cham. https://doi.org/10.1007/978-3-030-41618-8_14

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