Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/73733
Authors: 
Montén, Anna
Thater, Christian
Year of Publication: 
2010
Series/Report no.: 
Ifo Working Paper 83
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.
Subjects: 
Child care
efficiency analysis
municipalities
service provision
JEL: 
H42
H72
J13
Document Type: 
Working Paper

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