Variation in spending efficiency: the effects of exogenous factors on municipal efficiency in a recently decentralized country

Erik Alda and Ljubinka Andonoska

Applied Economics Letters, 2023, vol. 30, issue 11, 1453-1456

Abstract: Research suggests that external factors influence municipal spending efficiency. We tested this assumption using a conditional order-m efficiency model on an eight-year panel of 79 Macedonian municipalities. The findings suggest that factors outside the control of municipal managers affect efficiency differently. Understanding how each factor influences municipal efficiency can help municipal governments improve their overall performance.

Date: 2023
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DOI: 10.1080/13504851.2022.2061704

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