Public sector efficiency: the roles of political and budgetary institutions, fiscal capacity, and democratic participation

Borge, Lars–Erik; Falch, Torberg; Tovmo, Per

doi:10.1007/s11127-008-9309-7

Cited by 184 publications

(200 citation statements)

References 34 publications

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“…We use an efficiency measure at local government level, available for the period 2001-2007, developed by Borge et al (2008) as dependent variable. This measure is the main indicator of productivity in Norwegian local governments, and has also been used by e.g.…”

Section: Efficiency and Hydropower Revenuesmentioning

confidence: 99%

Local natural resource curse?

Borge

Parmer

Torvik

2015

Journal of Public Economics

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The large variation in revenues among Norwegian local governments can partly be explained by revenues collected from hydropower production. This revenue variation, combined with good data availability, can be used to extend the literature on the resource curse in two directions. First, to ensure that there is no problem of endogeneity in the analysis we obtain a purely exogenous measure of local revenue by instrumenting the variation in hydropower revenue, and thus total revenue, by topology, average precipitation and meters of river in steep terrain. Second, using data for revenue derived from hydropower production in Norwegian local governments we test the 'Rentier State' hypothesis; that revenue derived from natural resources should harm efficiency more than revenue derived from other sources such as taxation. Although we do find that higher local government revenue reduces the efficiency in production of public goods, we do not find that this effect is stronger for natural resource revenue than for other revenue.

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Section: Efficiency and Hydropower Revenuesmentioning

confidence: 99%

Local natural resource curse?

Borge

Parmer

Torvik

2015

Journal of Public Economics

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“…choices (Borge et al, 2008). Finally, the share of women in the executive body of the municipality is included.…”

Section: Empirical Modelmentioning

confidence: 99%

Economic and Political Foundations of Local Tax Structures: An Empirical Investigation of the Tax Mix of Flemish Municipalities

Geys

Revelli

2011

Environ Plann C Gov Policy

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Building on the revenue structure theory developed by Hettich and Winer (1984, 1988, 1999, this paper is the first to investigate the economic and political determinants of local tax mix choices. We thereby use panel data on 289 municipalities in the Flemish region of Belgium (period 1995Belgium (period -2002, where local governments enjoy extensive fiscal autonomy and have a wide choice of available tax instruments. Estimating a system of five reduced-form equations for the five central revenue sources (income, property, business, user fees and other own revenues), our results show that economics plays a significantly more important role than politics in shaping the local tax mix. Moreover, supporting theoretical predictions about marginal cost equalization across available tax instruments, absolute reliance on each revenue source increases as the overall revenue requirement gets larger (a 'scaleeffect').

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“…Here we present a non exhaustive description of how this literature has evolved. Firstly, a growing number of studies and 2010b, Borge et al 2008, and Clements, 2002, among others) translated the traditional approach used to analyse the productive efficiency of firms to the case of public sector units (countries, municipalities, schools, hospitals, etc.) with the aim of obtaining empirical measures of the PSE for a set of units and rank them.…”

Section: Recent Concerns Around Public Sector Efficiencymentioning

confidence: 99%

“…2 See, among others, Afonso et al ( , 2010aAfonso et al ( , 2010b, Borge et al (2008) and Casiraghi et al (2009) for cross-country quantitative analyses on overall public sector performance and efficiency. 3 See Clements (2002) and Afonso and St. Aubyn (2005) for illustrative applications providing public policy-specific efficiency scores.…”

Section: Introductionmentioning

confidence: 99%

How costly are public sector inefficiencies? A theoretical framework for rationalising fiscal consolidations

Fernández

Fuentes

2017

Economics

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Fiscal adjustments consisting of spending cuts or tax increases are generally presented as the unavoidable way for achieving public finance sustainability in the long term. However, this view of fiscal consolidation processes is limited as it leaves out other aspects related to public sector performance which are relevant not only from the macroeconomic but also from the microeconomic perspective. This paper models Public Sector Performance (PSP) by proposing a theoretical framework that integrates the conventional methodology for measuring its productive efficiency and the monetary assessment of social welfare changes linked to public policy reforms. Two equivalent measures of social welfare change generated by improving (or worsening) productive efficiency are deduced using duality theory. The first is obtained from the cost function, while the second arises directly from the production function. The results reveal that taking advantage of budgetary savings obtained from this approach constitutes a valuable tool for designing welfareenhancing fiscal consolidation packages, meanwhile promoting sound fiscal balances and growth prospects over the long term.JEL D24 D60 D61 H40 H50

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Public sector efficiency: the roles of political and budgetary institutions, fiscal capacity, and democratic participation

Abstract: Public sector efficiency, Political and budgetary institutions, Fiscal capacity, Democratic participation, H72, H75,

Cited by 184 publications

References 34 publications

Local natural resource curse?

Local natural resource curse?

Economic and Political Foundations of Local Tax Structures: An Empirical Investigation of the Tax Mix of Flemish Municipalities

How costly are public sector inefficiencies? A theoretical framework for rationalising fiscal consolidations

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