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Efficiency and Sustainability of Local Public Goods and Services. Case Study for Romania

Marius Sorin Dincă (), Gheorghiţa Dincă () and Maria Andronic ()
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Marius Sorin Dincă: Faculty of Economic Sciences and Business Administration, Transylvania University of Brasov, 1 Colina Universitatii Street, Building A, Brasov 500036, Romania
Gheorghiţa Dincă: Faculty of Economic Sciences and Business Administration, Transylvania University of Brasov, 1 Colina Universitatii Street, Building A, Brasov 500036, Romania

Sustainability, 2016, vol. 8, issue 8, 1-24

Abstract: The aim of this paper is to evaluate the efficiency and sustainability of some local publicly-provided services (social, educational, public utilities). We have measured the Romanian local administrations expenditures’ efficiency in supplying public goods and services using the non-parametric model of data envelopment analysis. The appraisal of efficiency and sustainability is mandatory when studying the optimization of public sector costs born out of taxpayers’ money and the increase in the quantity and quality of supplied services. The services we have selected for this article cover many aspects of citizens’ life quality. We have processed data from 2011 for all 41 Romanian counties and the municipality of Bucharest. For each decision unit, we have established a technical score, either quantifying the efficiency of expenditures allocated for supplying a certain level of services or measuring results’ sustainability in terms of services rendered to local collectivities, considering a constant expenditure level. Based on the analyzed data, we have concluded that only 11 counties satisfy the required conditions. Furthermore, units registering a lower level of per capita expenditures have efficiency scores above the overall average, while counties with more citizens/taxpayers provided more public services compared to others.

Keywords: local public services’ sustainability; public expenditures; technical efficiency scores; data envelopment analysis (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2016
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