Performance evaluation of rural areas: the case of Estonian rural municipalities before the administrative reform
Laen...
Kuupäev
2018
Kättesaadav alates
Autorid
Luik-Lindsaar, Helis
Põldaru, Reet
Põder, Anne
Roots, Jüri
Ajakirja pealkiri
Ajakirja ISSN
Köite pealkiri
Kirjastaja
Abstrakt
Estonian municipalities have recently pa
ssed an administrative reform that has resulted
in the reorganisation of municipal management and decreased the number of municipalities.
Unfortunately, no thorough scientific research has been done to find out whether the emerging
helps to increase the ef
ficiency. The aim of this paper is to estimate the efficiency of Estonian
rural municipalities and to identify the factors that influence their efficiency. In this study we use
a two stage analysis. In the first stage, we use the DEA Slacks
-
Based Model’s (
SBM) output
-
oriented approach. In the second stage, we use the Fractional Regression Model (FRM) to
determine relevant exogenous factors that are associated with efficiency. 170 Estonian rural
municipalities have been analysed. According to the DEA results
, 28% of municipalities (48) are
efficient, the average efficiency of municipalities is 0.762. The analysis implies that there are
considerable differences between smaller and larger rural municipalities. FRM results revealed
that larger share of subsidies
characterize inefficient municipalities. The weaker the municipality,
the more state support the municipality must receive. A larger share of people with a higher
education increases the efficiency, it is related to higher salaries and therefore higher re
venue to
the municipality. Elderly residents in the population increases the efficiency, however it isn’t
sustainable in the long
-
run because more inputs are needed to offer various public services. The
results indicate that the further away a municipality
is from the capital, the more inefficient the
municipality becomes.
Kirjeldus
Article
Märksõnad
technical efficiency, rural municipalities, DEA, FRM, articles