Explaining Differences in Productive Efficiency: An Application to Belgian Municipalities

The purpose of this paper is to measure and explain variations in productive efficiency of municipal governments in Belgium. Technical efficiency is evaluated using a non-parametric method based on the Free Disposal Hull (FDH) reference technology. We first calculate input, output, and graph Farrell...

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Veröffentlicht in:Public choice 1994-09, Vol.80 (3/4), p.339-358
Hauptverfasser: de Borger, B., Kerstens, K., Moesen, W., Vanneste, J.
Format: Artikel
Sprache:eng
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Zusammenfassung:The purpose of this paper is to measure and explain variations in productive efficiency of municipal governments in Belgium. Technical efficiency is evaluated using a non-parametric method based on the Free Disposal Hull (FDH) reference technology. We first calculate input, output, and graph Farrell efficiency measures for a cross-section of all 589 Belgian municipalities. In a second stage of the analysis we explain the calculated differences in efficiency in terms of variables related to the structural characteristics of municipalities and to the institutional environment.
ISSN:0048-5829
1573-7101
DOI:10.1007/BF01053225