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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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Citations: View citations in EconPapers (14)

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DOI: 10.1080/00343404.2013.837872

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