What determines local governments' technical efficiency? : The case of road maintenance


Kalb, Alexander


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URL: http://ub-madoc.bib.uni-mannheim.de/2469
URN: urn:nbn:de:bsz:180-madoc-24690
Document Type: Working paper
Year of publication: 2009
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: R51 R30 H11 ,
Subject headings (SWD): Deutschland , Straßenbau , Regionale Infrastruktur , Gemeindeverwaltung , Kollektiventscheidung
Keywords (English): Technical Efficiency , Road Maintenance , Stochastic Frontier Analysis , Data Envelopment Analysis , German counties
Abstract: In this paper we investigate the determinants of local governments' technical efficiency in road maintenance for a panel of German counties using a broad variety of estimation approaches. More specifically, we calculate efficiency indices using non-parametric (DEA) and parametric (stochastic frontier analysis) reference technologies, and examine how these efficiency indices can be explained by estimating and comparing four different regression models. The results of our analysis show that (controlling for numerous characteristics of the counties) the disposable income of the counties' citizens, intergovernmental grants (for county roads), and the payments to the counties influence efficiency negatively. Concerning political variables we find weak evidence that efficiency decreases with an increasing share of seats of left-wing parties in the county council; the hypothesis that efficiency decreases with the degree of political concentration in the county council could not be confirmed.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Kalb, Alexander (2009) What determines local governments' technical efficiency? : The case of road maintenance. Open Access [Working paper]
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