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Improving efficiency through consolidation of jurisdictions? Evidence from the cantons of Switzerland


Widmer, Philippe K; Elias, George; Zweifel, Peter (2012). Improving efficiency through consolidation of jurisdictions? Evidence from the cantons of Switzerland. Working paper series / Department of Economics 85, University of Zurich.

Abstract

The purpose of this paper is to analyze the optimal scale of local jurisdictions (cantons) in Switzerland applying Data Envelopment Analysis (DEA) to the years 2000 to 2004. Aggregate output performance indicators for four local government activities (administration, education, health, and transportation) are used to measure technical and scale efficiency and to derive DEA scores. Results show that these public services fail to exhibit economies of scale, undermining quests for centralization of public good provision while suggesting the possibility of Tiebout competition.

Abstract

The purpose of this paper is to analyze the optimal scale of local jurisdictions (cantons) in Switzerland applying Data Envelopment Analysis (DEA) to the years 2000 to 2004. Aggregate output performance indicators for four local government activities (administration, education, health, and transportation) are used to measure technical and scale efficiency and to derive DEA scores. Results show that these public services fail to exhibit economies of scale, undermining quests for centralization of public good provision while suggesting the possibility of Tiebout competition.

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Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Economics
Working Paper Series > Department of Economics
Dewey Decimal Classification:330 Economics
JEL Classification:C14, C67, H11, H72, H83
Uncontrolled Keywords:DEA, efficiency measurement, economies of scale, public good provision, Switzerland
Language:English
Date:July 2012
Deposited On:11 Jul 2012 13:12
Last Modified:13 Aug 2017 08:29
Series Name:Working paper series / Department of Economics
Number of Pages:19
ISSN:1664-7041
Official URL:http://www.econ.uzh.ch/static/wp/econwp085.pdf
Related URLs:http://www.econ.uzh.ch/static/workingpapers.php

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