Transition and Efficiency: How Efficient Are Polish Local Communes in Terms of the Delivery of Local Public Services?

• Autorzy: Lejla Lazović-Pita , Tomasz Skica , Lamija Šćeta
• Języki publikacji: EN

Abstrakty

EN

In recent years, there has been a significant increase in the level of interest in measuring the (in)efficiency of local government (communes). This topic is particularly important due to the growing social needs and limited financial resources of local governments. With the above in mind, this article focuses on the measurement of the technical (in)efficiency of municipalities in Poland. Due to the fact that studies on local government expenditure in terms of the entire population of communes are rarely undertaken, the population of Polish communes (2478 units) was included in the study. The research used a method based on stochastic frontier analysis (SFA). The authors state that urban communes are characterised by greater (in)efficiency than rural communes. The scale of a possible reduction in expenditure without lowering the effects of public task implementation is on average 20.01%, while for rural communes it is 15.94%. Public spending across the categories of communes is also differentiated by the age structure of the population and the homogeneity of political views at the central and local levels. The results obtained indicate that there is space not only for a revision of the current expenditure policy, but also for the development of proposed changes aimed at enhancing the efficiency of public spending. (original abstract)

Słowa kluczowe

EN

Public services; Local community; Efficiency calculation; Public expenditures

PL

Usługi publiczne; Społeczności lokalne; Rachunek efektywności; Wydatki publiczne

• Czasopismo: Forum Scientiae Oeconomia
• Rocznik: 2022
• Tom: 10
• Numer: nr 4
• Strony: 95--115

Twórcy

autor

Lejla Lazović-Pita

• University of Sarajevo, Bosnia and Herzegovina

autor

Tomasz Skica

• University of Information Technology and Management in Rzeszów, Poland

autor

Lamija Šćeta

• University of Sarajevo, Bosnia and Herzegovina

Bibliografia

• Benito-Lopez, B., del Rocio Moreno-Enguix, M., Solana-Ibañez, J. (2011), Determinants of efficiency in the provision of municipal street-cleaning and refuse collection services, Waste Management, 31(6), 1099-1108. https://doi.org/10.1016/j.wasman.2011.01.019.
• Boetti, L., Piacenza, M., Turati, G. (2012), Decentralization and local governments' performance: How does fiscal autonomy affect spending efficiency?, FinanzArchiv / Public Finance Analysis, 68(3), 269-302. DOI: 10.1628/001522112X653840.
• Borge, L. E., Falch, T., Tovmo, P. (2008), Public sector efficiency: The roles of political and budgetary institutions, fiscal capacity, and democratic participation, Public Choice, 136(3-4), 475-495. https://doi.org/10.1007/s11127-008-9309-7.
• Bosch, N., Pedraja, F., Suárez-Pandiello, J. (2000), Measuring the efficiency of Spanish municipal refuse collection services, Local Government Studies, 26(3), 71-90. https://doi.org/10.1080/03003930008434000.
• Caves, D. W., Christensen, L. R., Diewert, W. E. (1982), The economic theory of index numbers and the measurement of input, output, and productivity, Econometrica: Journal of the Econometric Society, 50(6), 1393-1414. https://doi.org/10.2307/1913388.
• Chapelle, K., Plane, P. (2005), Technical efficiency measurement within the manufacturing sector in Côte d'Ivoire: A stochastic frontier approach, Journal of Development Studies, 41(7), 1303-1324. https://doi.org/10.1080/00220380500170964.
• Cuadrado-Ballesteros, B., Bisogno, M. (2019), Efficiency as a determinant of financial condition: an assessment of Italian and Spanish local governments, International Public Management Journal, 22(5), 743-774. https://doi.org/10.1080/10967494.2018.1476426.
• Daraio, C., Kerstens, K., Nepomuceno, T., Sickles, R. C. (2020), Empirical surveys of frontier applications: A meta-review, International Transactions in Operational Research, 27(2), 709-738. https://doi.org/10.1111/itor.12649.
• De Borger, B., and Kerstens, K. (1996), Cost efficiency of Belgian local governments: A comparative analysis of FDH, DEA, and econometric approaches, Regional Science and Urban Economics, 26(2), 145-170. https://doi.org/10.1016/0166-0462(95)02127-2.
• Demographic Yearbook of Poland (2018), Warszawa Statistics.
• EBRD (2019), Transition report 2019-2020, Better Governance, Better Economies, retrieved from: https://www.ebrd.com/news/ publications/transition-report/transition-report-201920-better-governance-better-economies.html. (accessed 20 May 2021).
• EBRD (2020), Transition report 2020-2021, The State Strikes Back, retrieved from: https:// www.ebrd.com/news/publications/transition-report/transition-report-202021.html. (accessed 20 May 2021).
• Emrouznejad, A., Yang, G. L. (2018), A survey and analysis of the first 40 years of scholarly literature in DEA: 1978-2016, Socioeconomic Planning Sciences, 61, 4-8. https://doi.org/10.1016/j.seps.2017.01.008.
• European Commission (2012), Social Impact of Emigration and Rural-Urban Migration in Central and Eastern Europe, retrieved from: https://ec.europa.eu/social/main.jsp?catId= 89andfurtherNews=yesandnewsId=1778andlangId=en. (accessed 22 May 2021).
• Geys, B., Heinemann, F., Kalb, A. (2010), Voter involvement, fiscal autonomy and public sector efficiency: Evidence from German municipalities, European Journal of Political Economy, 26(2), 265-278, https://doi.org/10.1016/j.ejpoleco.2009.11.002.
• Grzebyk, M., Pierscieniak, A., Stec, M. (2021), Assessment of Management Efficiency in Local Administrative Offices: Case Study Poland, Lex Localis-Journal of Local Self Government, 19(2). https://doi.org/10.4335/19.2.329-351(2021).
• Guziejewska, B. (2013), Intergovernmental fiscal relations. Theoretical aspects and Poland's experience, Financial Internet Quarterly "e-Finanse", 9(3), 24-32.
• Hassine-Belghith, N. B. (2009), Exporting, technical efficiency and product quality: An empirical analysis of the agricultural sector in the Mediterranean countries, The Journal of Development Studies, 45(5), 769-788. https://doi.org/10.1080/00220380902753201.
• Hodžić, S., Muharemović, A. (2019), Fiscal Decentralization and Efficiency of Regional Government in Croatia: A Data Envelopment Analysis, Lex Localis-Journal of Local SelfGovernment, 17(3), 453-470. DOI:10.4335/17.3.453-470(2019).
• Hunjet, D., Neralić, L., Wendell, E. R. (2012), An application of categorical models of data envelopment analysis, in: V. Charles and M. Kumar (Eds.), Data Envelopment Analysis and its Applications to Management, Newcastle upon Tyne: Cambridge Scholars Publishing.
• Hunjet, D., Neralić, L., Wendell, R. E. (2015), Evaluation of the dynamic efficiency of Croatian towns using Data Envelopment Analysis, Central European Journal of Operations Research, 23(3), 675-686. https://doi.org/10.1007/s10100-014-0363-6.
• Jackson, P. M. (2011), Governance by numbers: what have we learned over the past 30 years?, Public Money and Management, 31(1), 13-26. https://doi.org/10.1080/09540962.2011.545542.
• Jedynak, T., Wąsowicz, K. (2021), The Relationship between Efficiency and Quality of Municipally Owned Corporations: Evidence from Local Public Transport and Waste Management in Poland, Sustainability, 13(17), 9804. https://doi.org/10.3390/su13179804.
• Kalb, A. (2010), The impact of intergovernmental grants on cost efficiency: Theory and evidence from German municipalities, Economic Analysis and Policy, 40(1), 23-48. https://doi.org/10.1016/S0313-5926(10)50002-X.
• Kalb, A., Geys, B., Heinemann, F. (2011), Value for money? German local government effieciency in a comparative perspective, Applied Economics, 44(2), 201-218. https://doi.org/10.1080/00036846.2010.502110.
• Kodde, David A., Franz C. Palm. (1986), Wald criteria for jointly testing equality and inequality restrictions, Econometrica: Journal of the Econometric Society, 54(5), 1243-1248. https://doi.org/10.2307/1912331.
• Kopańska, A. (2018), Partial fiscal decentralization and local government spending policy, Financial Internet Quarterly "e-Finanse", 14(3), 21-31.
• Kumbhakar, S., Gosh, S., McGuckin, J. (1991), A generalized production frontier approach for estimating determinants of inefficiency in U.S. dairy firms, Journal of Business and Economic Statistics, 9, 279-86.
• Kumbhakar, S. C., Wang, H., Horncastle, A. P. (2015), A practitioner's guide to stochastic frontier analysis using Stata, New York: Cambridge University Press.
• Lazović-Pita, L., Šćeta, L. (2021), A stochastic frontier approach to measuring inefficiency of local communities in Bosnia and Herzegovina, The South East European Journal of Economics and Business, 16(1), 18- 29. DOI: 10.2478/jeb-2021-0002.
• Milán-García, J., Rueda-López, N., De Pablo- Valenciano, J. (2022), Local government efficiency: reviewing determinants and setting new trends, International Transactions in Operational Research, 29(5), 2871-2898. https://doi.org/10.1111/itor.13032.
• Musgrave, R. (1959), The Theory of Public Finance: A Study in Public Economy, New York: McGraw-Hill.
• Narbón-Perpiñá, I., De Witte, K. (2018a), Local governments' efficiency: A systematic literature review - part I, International Transactions in Operational Research, 25(2), 431-468. https://doi.org/10.1111/itor.12364.
• Narbón-Perpiñá, I., De Witte, K. (2018b), Local governments' efficiency: A systematic literature review - part II, International Transactions in Operational Research, 25(4), 1107-1136. https://doi.org/10.1111/itor.12389.
• Nikolov, M., Brosio, G. (2015), Efficient delivery of local public services in ethnically fragmented municipalities, Lex Localis, 13(3), 299-319. DOI:10.4335/13.3.299-319(2015).
• Nikolov, M., Hrovatin, N. (2013), Cost efficiency of Macedonian municipalities in service delivery: Does ethnic fragmentation matter?, Lex Localis, 11(3), 743-775. DOI:10.4335/11.3.743-775(2013).
• Oates, W. (1972), Fiscal Federalism, Harcourt Brace Jovanovich: NY.
• Onaran, Ö. (2011), From transition crisis to the global crisis: Twenty years of capitalism and labour in the Central and Eastern EU new member states, Capital and Class, 35(2), 213-231. https://doi.org/10.1177/0309816811402648.
• Pevcin, P. (2013), Costs and Efficiency of Municipalities in Slovenia, Lex Localis-Journal of Local Self-Government, 11(3), 417-429. https://doi.org/10.4335/11.3.531-543(2013).
• Pevcin, P. (2014), Efficiency levels of sub-national governments: a comparison of SFA and DEA estimations, The TQM Journal, 26(3), 275- 283. https://doi.org/10.1108/TQM-12-2013-0127.
• Rabar, D. (2013), Assessment of regional efficiency in Croatia using data envelopment analysis, Croatian Operational Research Review, 4(1), 76-88.
• Radulovic, B., Dragutinovic, S. (2015), Efficiency of local self-governments in Serbia: An SFA approach, Industrija, 43(3), 123-142. DOI: 10.5937/industrija43-8846.
• Šastná, L., Gregor, M. (2015), Public sector effi ciency in transition and beyond: Evidence from Czech local governments, Applied Economics, 47(7), 680-699. https://doi.org/10.1080/00036846.2014.978077.
• Skica, T., Leśniowska-Gontarz, M., Miszczyńska, K. (2019), Measuring the efficiency of Polish municipalities in terms of sustainable development-data envelopment analysis approach, The South East European Journal of Economics and Business, 14(2), 54-66. DOI: 10.2478/jeb-2019-0013.
• Škuflić, L., Rabar, D., Šokčević, S. (2010), Assessment of the efficiency of Croatian counties using data envelopment analysis, Economic research-Ekonomska Istraživanja, 23(2), 88-101. https://doi.org/10.1080/1331677X.2010.11517414.
• Slijepčević, S. (2019), Measuring Efficiency at the Regional Level: A Data Envelopment Analysis Approach, Lex Localis, 17(3), 679-696. https://doi.org/10.4335/17.3.679-696(2019).
• Sobczak, I. (2014), Bilans Ludności. in: Z. Strzelecki (Ed.), Sytuacja demograficzna Polski 2013-2014 (pp. 40-56), Zakład Wydawnictw Statystycznych, Warszawa. (Original work published in Polish).
• Soko, A. (2018), (DIS) Advantages of decentralization models driven by non-economic reasons: the case of Bosnia and Herzegovina, The South East European Journal of Economics and Business, 13(1), 81-92. DOI: 10.2478/jeb-2018-0007.
• Soko, A., Zorič, J. (2018), Municipal efficiency and economies of scale in Bosnia and Herzegovina, Lex Localis, 16(4), 715-734. DOI:10.4335/16.4.715-734(2018).
• Stastna, L., Gregor, M. (2011). Local government efficiency: Evidence from the Czech municipalities, Institute of Economic Studies Working Paper, No. 14, 1-72.
• Świrska, A. (2014), Performance-Based Budget as an element of New Public Management in the Public Finance System in Poland, Hyperion International Journal of Econophysics and New Economy, 7(1), 109-124.
• Swirska, A., Marciniuk-Kluska, A. (2015), Selected issues of the local finance system in Poland, Prosperitas, 2(1), 199-223.
• Tiebout, C. (1956), A pure theory of local expenditures, The Journal of Political Economy 64, 416-424.
• The Council of Europe. (1985, October 15), The European Charter of Local SelfGovernment, retrieved from: https://rm.coe.int/168007a088. (accessed 20 June 2021).
• Worthington, A. C., Dollery, B. E. (2000), Measuring efficiency in local governments' planning and regulatory function, Public Productivity and Management Review, 23(4), 469-485. https://doi.org/10.2307/3380564.
• Worthington, A. C., Dollery, B. E. (2001), Measuring efficiency in local government: An analysis of New South Wales municipalities' domestic waste management function, Policy Studies Journal, 29(2), 232-249. https://doi.org/10.1111/j.1541-0072.2001.tb02088.x.

Identyfikatory

DOI

https://doi.org/10.23762/FSO_VOL10_NO4_5