Efficiency Measurement in Spanish Local Government: The Case of Municipal Water Services

Isabel M. García‐Sánchez

Review of Policy Research, 2006, vol. 23, issue 2, 355-372

Abstract: In this work, we established a procedure for evaluation of the efficiency of the water supply. This procedure has allowed us to find that the proposed indicators have a discriminating capability in the analysis of the service, and to reject criticisms traditionally assigned to the sensitivity of the data envelopment analysis (DEA) technique in relation to degrees of freedom. The results obtained show that the population density, as a factor that defines one of the particular characteristics of the surroundings of each municipality, has a statistically significant impact on the indexes of efficiency, this affirmation not being extended to the public or private ownership of the service. The scale inefficiency is higher than the technical inefficiency. These typologies of efficiency are, principally, motivated by the supply side of the service, which is specially linked with the necessary infrastructure. The demand of the citizens is satisfied with a behavior close to optimal.

Date: 2006
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