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Value for money? German local government efficiency in a comparative perspective

Kalb, Alexander; Geys, Benny; Heinemann, Friedrich
Journal article, Peer reviewed
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Geys_AE_2012.pdf (212.4Kb)
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http://hdl.handle.net/11250/93460
Utgivelsesdato
2012
Metadata
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  • Scientific articles [1771]
Originalversjon
http://dx.doi.org/10.1080/00036846.2010.502110
Sammendrag
In this paper, we investigate the cost efficiency of German local governments in the state of Baden-Württemberg in 2004 using a stochastic frontier approach. Besides being the first study on German data, we add two elements to the literature. First, we provide a comparative perspective, allowing us to embed our results in the broader literature. Second, unlike most previous studies, we explicitly account for exogenous or non-discretionary influences when estimating municipal efficiency scores. The results suggest that disregarding such exogenous factors can lead to significant and systematic bias in the estimated inefficiency levels. Particularly, underestimation of efficiency occurs for municipalities with high tourist activity, while the reverse is true for municipalities with high unemployment.
Beskrivelse
This is the authors’ final, accepted and refereed manuscript to the article
Utgiver
Taylor and Francis
Tidsskrift
Applied Economics

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