On the Cost-Efficiency of Service Delivery in Small Municipalities
2013; Routledge; Volume: 49; Issue: 9 Linguagem: Inglês
10.1080/00343404.2013.837872
ISSN1360-0591
AutoresF.J. Arcelus, Pablo Arocena, Fermín Cabasés, Pedro Pascual,
Tópico(s)Fiscal Policies and Political Economy
ResumoArcelus F. J., Arocena P., Cabasés 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.
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