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Determinants of efficiency in child care provision

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  • Anna Montén
  • Christian Thater

Abstract

This article analyzes the efficiency in the provision of child care services at the municipal level and identifies the main determinants of inefficiency. We use a unique data set on the local child care expenditures in the eastern German State of Saxony. The analysis is performed in two stages. First, we measure the efficiency by using a Data Envelopment Analysis (DEA). Second, we consider political, fiscal and demographic variables in a truncated regression to identify the determinants of inefficiency. We find substantial differences in efficiency; the median municipality is up to 28% inefficient in expenditures on child care. Explanatory variables such as an uncompensated mayor or a larger share of over 65-year olds significantly increases inefficiency.

Suggested Citation

  • Anna Montén & Christian Thater, 2010. "Determinants of efficiency in child care provision," ifo Working Paper Series 83, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    • Handle: RePEc:ces:ifowps:_83
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    Cited by:

    1. Laura Carosi & Giovanna D'Inverno & Letizia Ravagli, 2014. "Global public spending efficiency in Tuscan municipalities," Discussion Papers 2014/175, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    2. Carolin Fritzsche, 2018. "Analyzing the Efficiency of County Road Provision – Evidence from Eastern German Counties," ifo Working Paper Series 249, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    3. Bönisch, Peter & Haug, Peter & Illy, Annette & Schreier, Lukas, 2011. "Municipality Size and Efficiency of Local Public Services: Does Size Matter?," IWH Discussion Papers 18/2011, Halle Institute for Economic Research (IWH).
    4. Koppitz David & Půček Milan & Ochrana František & Plaček Michal, 2015. "Comparative Analysis of Selected Factors Affecting Heating Costs of Schools in Selected Balkan Countries," NISPAcee Journal of Public Administration and Policy, Sciendo, vol. 8(1), pages 61-84, June.

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    More about this item

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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