Cost Efficiency of Finnish Municipalities in Basic Service Provision 1994-2002
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| Format: | Artículo científico |
| Language: | en |
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Universidade de Santiago de Compostela
2005
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| author | Heikki A. Loikkanen |
| author_facet | Heikki A. Loikkanen |
| contents | Cost Efficiency of Finnish Municipalities in Basic Service Provision 1994-2002 Heikki A. Loikkanen Ilkka Susiluoto Estudios Territoriales Efficiency Local public sector Data Envelopment Analysis We study the cost efficiency of basic welfare service provision in 353Finnish municipalities in 1994-2002. First, Data Envelopment Analysis(DEA) is employed in calculating efficiency scores for municipalities. InDEA the outputs consist of six to ten volume indicators of services inhealth, social and education sectors. As the combined input, costs ofproviding (either producing or buying) these services were used.According to our results, there were considerable cost efficiencydifferences between the municipalities, and they remained fairly stableover time. The most efficient municipalities were rather small andmostly located in southern Finland, while the least efficient ones were inthe peripheral northern parts of the country. The biggest cities showedrather varying performance. As the second stage, the DEA efficiencyscores were explained with regression models. It was found thatperipheral location, high income level (high wages), large population,high unemployment, diverse service structure and a big share of servicesbought from other municipalities tend to reduce efficiency of municipalservice provision. Big share of municipal workers in age group 35-49years, dense urban structure, big share of services bought from privatesector and high education level of inhabitants tend to increase efficiency.These results apply for 1994-2002 and also mostly for its sub-periods.Great state grants reduced efficiency in first years after the end ofmatching grant era in 1993. Later, during the block grant era our grantvariable was unrelated to efficiency. Political variables and turnover inlocal elections did not explain efficiency differences. 2005 artículo científico 1697-6223 https://www.redalyc.org/articulo.oa?id=50400402 en http://www.redalyc.org/revista.oa?id=504 Urban Public Economics Review application/pdf Universidade de Santiago de Compostela Urban Public Economics Review (España) Num.4 |
| format | Artículo científico |
| id | redalyc_50400402 |
| institution | Redalyc |
| language | en |
| publishDate | 2005 |
| publisher | Universidade de Santiago de Compostela |
| spellingShingle | Cost Efficiency of Finnish Municipalities in Basic Service Provision 1994-2002 Heikki A. Loikkanen Estudios Territoriales Efficiency Local public sector Data Envelopment Analysis Cost Efficiency of Finnish Municipalities in Basic Service Provision 1994-2002 Heikki A. Loikkanen Ilkka Susiluoto Estudios Territoriales Efficiency Local public sector Data Envelopment Analysis We study the cost efficiency of basic welfare service provision in 353Finnish municipalities in 1994-2002. First, Data Envelopment Analysis(DEA) is employed in calculating efficiency scores for municipalities. InDEA the outputs consist of six to ten volume indicators of services inhealth, social and education sectors. As the combined input, costs ofproviding (either producing or buying) these services were used.According to our results, there were considerable cost efficiencydifferences between the municipalities, and they remained fairly stableover time. The most efficient municipalities were rather small andmostly located in southern Finland, while the least efficient ones were inthe peripheral northern parts of the country. The biggest cities showedrather varying performance. As the second stage, the DEA efficiencyscores were explained with regression models. It was found thatperipheral location, high income level (high wages), large population,high unemployment, diverse service structure and a big share of servicesbought from other municipalities tend to reduce efficiency of municipalservice provision. Big share of municipal workers in age group 35-49years, dense urban structure, big share of services bought from privatesector and high education level of inhabitants tend to increase efficiency.These results apply for 1994-2002 and also mostly for its sub-periods.Great state grants reduced efficiency in first years after the end ofmatching grant era in 1993. Later, during the block grant era our grantvariable was unrelated to efficiency. Political variables and turnover inlocal elections did not explain efficiency differences. 2005 artículo científico 1697-6223 https://www.redalyc.org/articulo.oa?id=50400402 en http://www.redalyc.org/revista.oa?id=504 Urban Public Economics Review application/pdf Universidade de Santiago de Compostela Urban Public Economics Review (España) Num.4 |
| title | Cost Efficiency of Finnish Municipalities in Basic Service Provision 1994-2002 |
| topic | Estudios Territoriales Efficiency Local public sector Data Envelopment Analysis |
| url | https://www.redalyc.org/articulo.oa?id=50400402 |