On the Cost-Efficiency of Service Delivery in Small Municipalities
Francisco J. Arcelus,
Pablo Arocena,
Ferm�n Cabas�s and
Pedro Pascual
Regional Studies, 2015, vol. 49, issue 9, 1469-1480
Abstract:
Arcelus F. J., Arocena P., Cabas�s F. and Pascual P . On the cost-efficiency of service delivery in small municipalities, Regional Studies . This paper analyses the determinants of the efficiency of local government spending. To that effect, a stochastic cost frontier is estimated on a sample of 260 small municipalities from Navarre, a region located in northern Spain. The results suggest that the cost-efficiency in the provision of municipal services increases with (1) the level of pooling or joint provision of services among municipalities; (2) the saliency of local taxes, as compared with regional grants, in its operating budget; (3) the presence of external public comptrollers; and (4) the magnitude of the municipality's accumulated past investment in infrastructures.
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:taf:regstd:v:49:y:2015:i:9:p:1469-1480
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DOI: 10.1080/00343404.2013.837872
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