Efficiency in the Provision of Public Municipal Cultural Facilities

  • Bernardino Benito University of Murcia, Faculty of Economics and Business, Department of Accounting and Finance, Campus of Espinardo, 30100-Murcia
  • José Solana University Centre of DefenceSpanish Air Force Academy (MDE-UPCT), C/Coronel López Peña, s/n, 30720-Santiago de la Ribera, Murcia
  • María-Rocío Moreno University of Murcia, Faculty of Economics and Business, Department of Accounting and Finance, Campus of Espinardo, 30100-Murcia
Keywords: Cultural Economics, Local Governments, Public Infrastructures, Efficiency

Abstract

Recent years have seen a wealth of studies on Cultural Economics, in line with the importance of the economic performance of the public sector. In this context, the two-stage double bootstrap procedure of Simar and Wilson (2007) has been used to estimate the efficiency determinants of Spanish local entities in the management of culture oriented public infrastructures, given the limited financial resources available to these entities. The final sample comprises 1,159 municipalities. In the first stage, technical efficiency is estimated by Data Envelopment Analysis (DEA) and, based on a truncated-regression, the resulting efficiency estimates are regressed on a group of 10 selected environmental variables in a second stage. We have also considered the influence of a dummy categorical variable –the political sign of the governing party– on the efficient provision of the facilities under study. The results show the existence of a significant relation between efficiency and all the variables except two: unemployment rate and political strength. Our results also show that municipalities governed by conservatives parties are more efficient.

Author Biographies

Bernardino Benito, University of Murcia, Faculty of Economics and Business, Department of Accounting and Finance, Campus of Espinardo, 30100-Murcia
Professor Department of Accounting and Finance Faculty of Economics and Business
José Solana, University Centre of DefenceSpanish Air Force Academy (MDE-UPCT), C/Coronel López Peña, s/n, 30720-Santiago de la Ribera, Murcia
Associate Professor University Centre of Defence Spanish Air Force Academy (MDE-UPCT)
María-Rocío Moreno, University of Murcia, Faculty of Economics and Business, Department of Accounting and Finance, Campus of Espinardo, 30100-Murcia
Associate Professor Department of Accounting and Finance Faculty of Economics and Business
Published
2014-04-16
Section
Articles