Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/55295
Authors: 
Nieswand, Maria
Seifert, Stefan
Year of Publication: 
2011
Series/Report no.: 
DIW Discussion Papers 1130
Abstract: 
Efforts undertaken by France to restructure the allocation of governmental competencies increased the importance of subnational governments by transferring additional tasks. This paper analyzes the efficiency of public spending on an intermediate government level for a sample of 96 départements in metropolitan France in 2008. Spending efficiency is measured using Data Envelopment Analysis (DEA). Results indicate significant room for improvements and detect spending inefficiencies averaging between 10 and 22 percent, depending on model specification. To explain efficiency, a bootstrapped truncated regression, following Simar and Wilson (2007), is applied. The second-stage regression shows that efficiency is also determined by exogenous factors and identifies the distance to the national capital, inhabitants' income and the share of inhabitants of an age over 65 as significant determinants of efficiency.
Subjects: 
intermediate government spending efficiency
nonparametric efficiency analysis
bootstrapped truncated regression
JEL: 
C14
H11
H72
Document Type: 
Working Paper

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