Voters’ Information, Corruption, and the Efficiency of Local Public Services

Graziano Abrate, Federico Boffa, Fabrizio Erbetta and Davide Vannoni
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Graziano Abrate: Department of Economics and Business, University of Piemonte Orientale, 28100 Novara, Italy
Fabrizio Erbetta: Department of Economics and Business, University of Piemonte Orientale, 28100 Novara, Italy

Sustainability, 2018, vol. 10, issue 12, 1-22

Abstract: This paper explores the link between voters’ information, corruption, and efficiency in the context of a career concern model, where politically connected local monopolies are in charge of the provision of a local public service. We find that both a corrupt environment and a low level of voters’ information on managerial actions induce managers to reduce effort levels, thereby contributing to drive down efficiency. We test our predictions using data on solid waste management services provided by a large sample of Italian municipalities. We estimate a stochastic cost frontier model that provides robust evidence that services produced in more corrupted regions with low voters’ information are substantially less cost-efficient.

Keywords: fight against corruption; economic vote; inefficiency of the public sector; new models of public management; Governance 4.0 (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Related works:
Working Paper: Voters' Information, Corruption, and the Efficiency of Local Public Services (2016)
Working Paper: Voters' Information, Corruption, and the Efficiency of Local Public Services (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:12:p:4775-:d:190540

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