MEASURING THE EFFICIENCY AND PRODUCTIVITY CHANGE OF MUNICIPALITIES WITH AN OUTPUT ORIENTED MODEL:EMPIRICAL EVIDENCE ACROSS GREEK MUNICIPALITIES OVER THE TIME PERIOD 2012-2016

Ifigeneia-Dimitra Pougkakioti ()
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Ifigeneia-Dimitra Pougkakioti: University of Thessaly, Greece

Romanian Journal of Regional Science, 2021, vol. 15, issue 1, 98-125

Abstract: This paper investigates the relative efficiency and productivity change of municipalities (regions of Thessaly and Central Greece), during the period 2012–2016. This period is rather special, because Greece had to meet the commitments imposed by the very tight fiscal consolidation program and, secondly, a major structural reform had preceded in Greek Local Government. It implements Data Envelopment Analysis (DEA) with output orientation and Malmquist analysis. Additionally, it estimates the effects of the environmental factors on the efficiency using Regression Analysis. The findings suggest that municipalities could produce on average the same quantity of inputs with 23.7% or 10.40% more quantity of outputs and on average refrain 14.90% from the optimal scale. The total factor productivity change has risen by an annual average of 0.6% relatively to the base year 2012. Moreover, the evaluation of municipalities on the basis of efficiency and productivity criteria and the identification of municipalities constituting benchmarks, contribute to policy formulation and region-based approaches.

Keywords: Greek municipalities; efficiency; productivity; DEA; Malmquist analysis (search for similar items in EconPapers)
JEL-codes: C14 J48 P41 P43 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:rrs:journl:v:15:y:2021:i:1:p:98-125

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