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Análisis de la eficiencia del gasto municipal y de sus determinantes

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  • Pedro Frankle
  • Pedro Herrera Catalán

    (MEF)

Abstract

In this study we analyzed the efficiency of the spending of 1686 Peruvian municipalities for the year 2003 through the evaluation to the municipal public activities as a process of production which transforms inputs in outputs (Bradford et. al., 1969 y Fisher, 1996). In doing so, we established several "best-practice" production frontiers in order to estimate the extent of municipal spending that seems to be wasted relative to that frontier. Five methodologies for the production frontier estimations were used (i) 3 non parametric: (i) Free Disposal Hull (FDH) and Data Envelopment Analysis (DEA-CRS and DEA-VRS) and (ii) 2 parametric: one deterministic and the other stochastic, which were estimated through 10 categories of municipalities (4 groups of provincial and 6 of district municipalities) defined through a cluster methodology. Finally, using TOBIT regression models, we analyzed the fiscal, socioeconomics and demographic determinants of the efficiency levels. We found different levels of efficiency and although we identified some good practices, the result at the national level is matter of concern because the same results could have been obtained with 57.6% less resources. Among the main determinants of this inefficiency spending the FONCOMUN and canon transfers were found, mainly at the district municipal level. One of the factors that allowed for a more efficient provision of local services was the civil participation, represented in the study by the Local Coordination Council. The results of the study show that there is a need to make more efforts to improve the local government spending. Even more so, after the promulgation of the Supreme Decree No. 068-2006-PCM in October 2006, by virtue of which the culmination of the competences and function transfers process, initially programmed for 2006-20010, brought forward to the end of 2007.

Suggested Citation

  • Pedro Frankle & Pedro Herrera Catalán, 2007. "Análisis de la eficiencia del gasto municipal y de sus determinantes," Documentos de Trabajo / Working Papers 2007-260, Departamento de Economía - Pontificia Universidad Católica del Perú.
  • Handle: RePEc:pcp:pucwps:wp00260
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    File URL: http://files.pucp.edu.pe/departamento/economia/DDD260.pdf
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    Cited by:

    1. Yéssica Yasmín Santos Equihua & Irma Cristina Espitia Moreno & Rodrigo Gómez Monge, 2018. "International efficiency of biodiesel: An analysis for the case of Costa Rica, Spain, the United States and Mexico," Contaduría y Administración, Accounting and Management, vol. 63(2), pages 142-167, Abril-Jun.
    2. Stanislao Maldonado & Martin Ardanaz, 2023. "Natural resource windfalls and efficiency in local government expenditure: Evidence from Peru," Economics and Politics, Wiley Blackwell, vol. 35(1), pages 28-64, March.
    3. Yéssica Yasmín Santos Equihua & Irma Cristina Espitia Moreno & Rodrigo Gómez Monge, 2018. "Eficiencia internacional del biodiesel: un análisis para el caso de Costa Rica, España, Estados Unidos y México," Contaduría y Administración, Accounting and Management, vol. 63(2), pages 116-141, Abril-Jun.
    4. Martin Ardanaz & Stanislao Maldonado, 2016. "Natural Resource Windfalls and Efficiency of Local Government Expenditures: Evidence from Peru," Documentos de Trabajo 14578, Universidad del Rosario.

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