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Efficiency evaluation in municipal services: an application to the street lighting service in Spain

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  • José Lorenzo
  • Isabel Sánchez

Abstract

Efficiency evaluation is very important in the municipal realm because of its impact on the people’s standard of living. However, in most cases the value of public output is hardly significant, and therefore measurement is necessarily limited to estimating technical efficiency, which is calculated using physical inputs and outputs. A major part of municipal services can be provided through different types of public management. This plurality of options lends greater relevance to the evaluation. This paper analyzes efficiency in the public street lighting service in Spanish towns, by means of DEA methodology, pursuing two objectives: to estimate the technical efficiency achieved and to discover whether differences in efficiency can be explained by the type of management, that has been chosen, whether public or private. The results of the analysis allow us to confirm that there is a significant relationship between the variables defined as inputs into the process and efficiency. However, the relationship is not very significant for the variables considered as outputs, in some cases. It was also detected that the factors defining the characteristics of the environment and the type of management, whether public or private, do not have a statistically significant impact on efficiency levels. Copyright Springer Science+Business Media, LLC 2007

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  • José Lorenzo & Isabel Sánchez, 2007. "Efficiency evaluation in municipal services: an application to the street lighting service in Spain," Journal of Productivity Analysis, Springer, vol. 27(3), pages 149-162, June.
    • Handle: RePEc:kap:jproda:v:27:y:2007:i:3:p:149-162
    DOI: 10.1007/s11123-007-0032-z
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    2. Cuadrado-Ballesteros, Beatriz & García-Sánchez, Isabel-María & Prado-Lorenzo, José-Manuel, 2013. "Effect of modes of public services delivery on the efficiency of local governments: A two-stage approach," Utilities Policy, Elsevier, vol. 26(C), pages 23-35.
    3. Konstantinos Ladas & Stylianos Kavadias & Christoph Loch, 2022. "Product Selling vs. Pay-Per-Use Service: A Strategic Analysis of Competing Business Models," Management Science, INFORMS, vol. 68(7), pages 4964-4982, July.
    4. Javier Parra Domínguez & Isabel María García Sánchez & Luis Rodríguez Domínguez, 2015. "Relationship between police efficiency and crime rate: a worldwide approach," European Journal of Law and Economics, Springer, vol. 39(1), pages 203-223, February.
    5. Anna Montén & Christian Thater, 2011. "Determinants of Efficiency in Child-Care Provision," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 67(4), pages 378-403, December.
    6. Isabel-María García-Sánchez, 2009. "Measuring the efficiency of local police force," European Journal of Law and Economics, Springer, vol. 27(1), pages 59-77, February.
    7. Darold Barnum & John Gleason, 2011. "Measuring efficiency under fixed proportion technologies," Journal of Productivity Analysis, Springer, vol. 35(3), pages 243-262, June.
    8. Frías Aceituno, José Valeriano & Marques, Maria da Conceição & Rodríguez Ariza, Lázaro, 2013. "Divulgación de información sostenible: ¿se adapta a las expectativas de la sociedad?," Revista de Contabilidad - Spanish Accounting Review, Elsevier, vol. 16(2), pages 147-158.
    9. de la Higuera-Molina, Emilio José & Campos-Alba, Cristina María & López-Pérez, Germán & Zafra-Gómez, José Luis, 2023. "Efficiency of water service management alternatives in Spain considering environmental factors," Utilities Policy, Elsevier, vol. 84(C).
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    11. Isabel Narbón-Perpiñá & Kristof De Witte, 2016. "Local governments’ efficiency: A systematic literature review – Part II," Working Papers 2016/21, Economics Department, Universitat Jaume I, Castellón (Spain).
    12. Isabel García-Sánchez & Luis Rodríguez-Domínguez & Javier Parra Domínguez, 2013. "Evaluation of the efficacy and effectiveness of the Spanish security forces," European Journal of Law and Economics, Springer, vol. 36(1), pages 57-75, August.
    13. Vidoli, Francesco & Auteri, Monica & Marinuzzi, Giorgia & Tortorella, Walter, 2023. "Spatial interdependence in cost efficiency and local government optimal size: The case of Italian municipalities," Socio-Economic Planning Sciences, Elsevier, vol. 86(C).
    14. Benito, Bernardino & Guillamón, María-Dolores & Martínez-Córdoba, Pedro-José, 2020. "Determinants of efficiency improvement in the Spanish public lighting sector," Utilities Policy, Elsevier, vol. 64(C).
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