Efficiency and Sustainability of Local Public Goods and Services. Case Study for Romania

Abstract

Abstract:The aim of this paper is to evaluate the efficiency and sustainability of some local publicly-provided services (social, educational, public utilities). We have measured the Romanian local administrations expenditures' efficiency in supplying public goods and services using the non-parametric model of data envelopment analysis. The appraisal of efficiency and sustainability is mandatory when studying the optimization of public sector costs born out of taxpayers' money and the increase in the quantity and quality of supplied services. The services we have selected for this article cover many aspects of citizens' life quality. We have processed data from 2011 for all 41 Romanian counties and the municipality of Bucharest. For each decision unit, we have established a technical score, either quantifying the efficiency of expenditures allocated for supplying a certain level of services or measuring results' sustainability in terms of services rendered to local collectivities, considering a constant expenditure level. Based on the analyzed data, we have concluded that only 11 counties satisfy the required conditions. Furthermore, units registering a lower level of per capita expenditures have efficiency scores above the overall average, while counties with more citizens/taxpayers provided more public services compared to others.

Provision of Basic Infrastructure in Mexico: A study from the Data Envelopment Analysis

“…Los outputs más recurrentes en los estudios sobre eficiencia en la provisión de bienes y servicios públicos son: producción, beneficiarios, infraestructura, servicios públicos, desarrollo social, bienestar social y calidad de vida. Mientras que los inputs más referenciados son: cantidad de funcionarios públicos, gasto corriente (Capítulo 1000, Capítulo 5000, Capítulo 6000, entre otros), gasto de inversión (FISE), subsidios, y transferencias (Afonso & Fernandes, 2008;Athanassopoulos & Triantis, 1998;Ávila & Cárdenas, 2012;Balaguer-Coll et al, 2002;Bankole et al, 2011;De Borger et al, 1994;Dincă et al, 2016;Herrera & Francke, 2009;Islas, 2012;Loikkanen & Susiluoto, 2005;Serrano, 2014).…”

“…),Athanassopoulos y Triantis (1998),Ávila y Cárdenas (2012), Balaguer-Coll et al, (2002,Bankole et al (2011), De Borger et al, (1994,Dincă et al (2016),Herrera y Francke (2009), Islas (2012), Loikkanen y Susiluoto (2005), y Serrano (2014) en el sentido de que existe una relación directa entre la utilización eficiente de los recursos, la provisión de infraestructura y el desarrollo social.…”

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“…The access to good quality public and social services is essential for daily life, for the economic and social wellbeing. (Dinc a et al 2016) argue that efficiency and sustainability are essential to make sure that beneficiaries receive the best possible services, corruption is minimized and central and local economy can benefit. One year later, highlighting public money's illegal use, bureaucracy, bribery and corruption, the same authors (Dinc a et al 2017: 78) argue that these extended phenomena bring about poverty and a low quality of public goods and services.…”

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“…Moreover, environmental protection, as well as other public services, such as public order, social protection, modern sewage, water distribution and treatment, public transportation and so forth, should be provided efficiently and sustainably in terms of timely delivery, costs and quality. That is especially true in countries like Romania where bureaucracy, social disparities, corruption and economic development are still a matter of great concern [4]. The necessity of protecting the environment involves the allocation of significant amounts of money both for the state and its subnational levels and for the companies which comply with specific legislation.…”