What Determines Efficiency in Local Government? A DEA Analysis of NSW Local Government

Abstract

Data envelopment analysis (DEA) has the potential to make strong contributions to the formulation of public policy. In particular, DEA can be used to identify the determinants of efficiency and this information can be used to inform debate around municipal boundary reform and other matters. However, there is a dearth of empirical literature on the accurate and correct specification of DEA. We use conceptual considerations to posit an ideal specification for Australian municipal DEA before estimating a number of models to demonstrate the effect of specification on the identification of determinants. Our evidence suggests that incorrect specification may well produce spurious associations and lead to poor public policymaking.

Faktor Penentu Kinerja Pemerintah Daerah

“…Kemudian variabel rasio efisiensi merupakan suatu rasio yang menunjukkan perbandingan jumlah penge luaran daerah yang ditujukan untuk pemer olehan PAD dibagi dengan jumlah PAD yang mampu direalisasikan daerah. Apabila nilai rasio efisiensi semakin kecil berarti penye lenggaraan pemerintahan daerah menun jukkan kinerja yang semakin baik/efisien (Drew, Kortt, & Dollery, 2015;Nurdin, Stock dale, & Scheepers, 2014;Valcarcel, 2012).…”

Gestão fiscal, eficiência da gestão pública e desenvolvimento socioeconômico dos municípios cearenses

“…The DEA method is a non-parametric technique that allows the measurement of the ratio of multiple inputs to obtain a variety of products, based on the perspective of relative efficiency (Drew, Kortt, & Dollery, 2015). This method was widely reported by Charnes, Cooper, and Rhodes (1978) as an empirical method that leaves behind some assumptions and overcomes limitations of traditional methods of efficiency measurement (Mukokoma & Dijk, 2013).…”

Measuring the Efficiency of Polish Municipalities – Data Envelopment Analysis Approach

“…Second stream in scientific research studies is to measure overall efficiency of municipalities. Yuan et al 2015 (Nijkamp and Suzuki 2009), Brazil (Sampaio de Sousa et al 2005), China (Sueyoshi and Yuan 2015), Australia (Drew et al 2015). Sueyoshi and Yuan (2015) measure the efficiency of municipality cities divided into four different kinds of local classifications.…”

“…The empirical outcomes point out that the Chinese government should allocate its economic capital to cities, which are located in the northwest region and strengthen stricter regulation on energy consumptions for environmental prevention in major cities. Drew et al (2015) demonstrate the effect of specification decisions on public policy made by employing four models of Australian municipal efficiency.…”