Work

Economies of scope in Portuguese local government using an augmented Hicks–Moorsteen approach

Year: 2018

Type: article

Abstract: Whereas a substantial empirical literature has investigated scale economies in local government, by contrast little effort has been directed at economies of scope. To address this gap in the literature, this paper empirically examines economies of scope in 308 Portuguese local governments and the extent to which it explains differential council performance. We employ a new methodology using geometric distance functions, an augmented Hicks–Moorsteen index, and partial frontiers for (in)efficiency assessment in local government. The results demonstrate that most councils that ‘externalize’ service provision face diseconomies of scope, which increase in proportion to the externalization of service provision.

Source: Regional Studies

DOI: 10.1080/00343404.2018.1508872

Authors: Paulo Caldas, Diogo Ferreira, Brian Dollery, Rui Marques

Institutions: University of Lisbon, Instituto Superior Técnico, University of New England, Yokohama National University

Language: English

Topic: Efficiency Analysis Using DEA

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Sustainable cities and communities

Open Access status: green

Funder: Fundação para a Ciência e a Tecnologia