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Local government efficiency: is there anything new after Troika’s intervention in Portugal?

Author

Listed:
  • Maria Basílio

    (Polytechnic Institute of Beja (IPBeja), Escola Superior de Tecnologia e Gestão)

  • Clara Pires

    (Polytechnic Institute of Beja (IPBeja), Escola Superior de Tecnologia e Gestão)

  • Carlos Borralho

    (Polytechnic Institute of Beja (IPBeja), Escola Superior de Tecnologia e Gestão)

  • José Pires Reis

    (Polytechnic Institute of Beja (IPBeja), Escola Superior de Tecnologia e Gestão)

Abstract

The austerity policies implemented in Portugal because of the bailout agreement between the Portuguese Government and the Troika include measures to increase performance and reduce costs. An analysis of local government efficiency and an assessment of its determinants is highly relevant for policy purposes, particularly when new efforts to decentralize are being discussed. The aim of this research is to evaluate the efficiency of the 278 mainland municipalities in Portugal using a two-stage procedure, combining data envelopment analysis in the first phase with fractional response models in the second. The analysis is performed for 2010 and 2015, before and after the Troika’s intervention in Portugal. Results show a similar pattern for both years, in the two stages. The results also indicate that there is no structural changes from 2010 to 2015, suggesting that the reforms implemented in municipalities did not succeed.

Suggested Citation

  • Maria Basílio & Clara Pires & Carlos Borralho & José Pires Reis, 2020. "Local government efficiency: is there anything new after Troika’s intervention in Portugal?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 10(2), pages 309-332, June.
    • Handle: RePEc:spr:eurase:v:10:y:2020:i:2:d:10.1007_s40822-019-00126-0
    DOI: 10.1007/s40822-019-00126-0
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    More about this item

    Keywords

    Municipalities; Two-stage DEA; Efficiency; Fractional response models;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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