Local government efficiency: is there anything new after Troika’s intervention in Portugal?

Maria Basílio (), Clara Pires (), Carlos Borralho () and José Pires Reis ()
Additional contact information
Maria Basílio: Polytechnic Institute of Beja (IPBeja), Escola Superior de Tecnologia e Gestão
Clara Pires: Polytechnic Institute of Beja (IPBeja), Escola Superior de Tecnologia e Gestão
Carlos Borralho: Polytechnic Institute of Beja (IPBeja), Escola Superior de Tecnologia e Gestão
José Pires Reis: Polytechnic Institute of Beja (IPBeja), Escola Superior de Tecnologia e Gestão

Eurasian Economic Review, 2020, vol. 10, issue 2, No 7, 309-332

Abstract: Abstract The austerity policies implemented in Portugal because of the bailout agreement between the Portuguese Government and the Troika include measures to increase performance and reduce costs. An analysis of local government efficiency and an assessment of its determinants is highly relevant for policy purposes, particularly when new efforts to decentralize are being discussed. The aim of this research is to evaluate the efficiency of the 278 mainland municipalities in Portugal using a two-stage procedure, combining data envelopment analysis in the first phase with fractional response models in the second. The analysis is performed for 2010 and 2015, before and after the Troika’s intervention in Portugal. Results show a similar pattern for both years, in the two stages. The results also indicate that there is no structural changes from 2010 to 2015, suggesting that the reforms implemented in municipalities did not succeed.

Keywords: Municipalities; Two-stage DEA; Efficiency; Fractional response models (search for similar items in EconPapers)
JEL-codes: C14 C35 H72 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s40822-019-00126-0 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eurase:v:10:y:2020:i:2:d:10.1007_s40822-019-00126-0

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/40822

DOI: 10.1007/s40822-019-00126-0

Access Statistics for this article

Eurasian Economic Review is currently edited by Dorothea Schäfer

More articles in Eurasian Economic Review from Springer, Eurasia Business and Economics Society Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().