Environmental externalities and efficiency measurement.
Production of desirable outputs often produces by-products that have harmful effects on the environment. This paper investigates technologies where the biggest good output producer is not the greatest polluter, i.e. technologies located on the downward-sloping segment of the frontier depicted in Fare et al. (1989). Directional distance functions and Data Envelopment Analysis techniques are used to define an algorithm that allows them to be identified empirically. Furthermore, we show that in such situations producers can contribute social goods, i.e. reducing polluting wastes, without limiting their capacity to maximise production of marketable output. Finally, we illustrate our methodology…
Understanding the Dynamic Effect of Contracting Out on the Delivery of Local Public Services
Máñez J., Pérez-López G., Prior D. and Zafra-Gómez J. L. Understanding the dynamic effect of contracting out on the delivery of local public services, Regional Studies. Contracting out is a mechanism through which the delivery of public services can be made more efficient. However, the process has yielded conflicting results. This paper presents a dynamic, mixed approach, incorporating an intertemporal frontier and a matching technique, to measure the short- and long-term effects of the implementation of contracting out on the efficiency of local public service delivery. The study demonstrates the existence of temporary inefficiency arising from the change in service management when contrac…