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Type: Journal article
Title: Local government efficiency: determinants and spatial interdependence
Author: Balaguer-Coll, M.T.
Brun-Martos, M.I.
Marquez-Ramos, L.
Prior, D.
Citation: Applied Economics, 2019; 51(14):1478-1494
Publisher: Taylor & Francis
Issue Date: 2019
ISSN: 0003-6846
Statement of
Maria Teresa Balaguer-Coll, Maria Isabel Brun-Martos, Laura Márquez-Ramos and Diego Prior
Abstract: We analyse the determinants of local government efficiency taking into account the presence of spatial interactions among neighbouring municipalities. To do so, first we estimate an efficiency index using the robust order-m methodology in Valencian municipalities (Spain). Second, we examine the socio-economic, political and budgetary factors that might influence efficiency levels. Finally, we analyse the spatial interactions present in our data. The results of estimating a spatial autoregressive model show that government efficiency in neighbouring municipalities positively affects the local government’s own efficiency. This highlights the importance of considering spatial dependence structures in studies on efficiency in the public sector.
Keywords: Local governments; efficiency; order-m; determinants; spatial interdependence; Valencian municipalities
Rights: © 2018 Informa UK Limited, trading as Taylor & Francis Group
RMID: 0030101002
DOI: 10.1080/00036846.2018.1527458
Appears in Collections:Institute for International Trade publications

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