Naslov
Comparative efficiency analysis of Croatian cities and municipalities: A non-parametric approach from a fiscal perspective

Autori
Rabar, Danijela ; Grbin, Andrej

Izvornik
Interdisciplinary management research XVII (1847-0408) 1 (2021); 874-899

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, članak, znanstveni

Ključne riječi
(in)efficiency, fiscal indicators, Croatian cities and municipalities, data envelopment analysis, categorical model

Sažetak
Many studies to date have shown serious disproportions in the level of economic development of Croatian local units, i.e., cities and municipalities. This indicates a need to analyze their comparative efficiency from different angles. In doing so, this study uses five fiscal indicators to empirically research the period from 2007 to 2019. The non- parametric dynamic analysis using data envelopment analysis (DEA) method has been performed to measure the inefficiencies and their sources, and to pinpoint the directions of required improvements for each local unit. Compared to the existing literature, this approach is a novelty at city and municipality levels in Croatia. The obtained relative efficiency results of 555 cities and municipalities confirm two and reject one hypothesis. The first confirmed hypothesis assumes significant disparities among cities and among municipalities, as well as between cities and municipalities. The second confirmed hypothesis refers to the sources of local governments’ inefficiency, indicating the number of local government employees as the most significant inefficiency source. The rejected hypothesis predicts the above-average efficiency of the Croatian Adriatic counties. The acceptance or rejection of hypotheses is based on the results of both basic and categorical DEA models, resulting in the guidelines intended for local policy makers to renew and upgrade their fiscal decisions in order to minimize disparities at the local unit level in Croatia. Due to the large number of local units, it is here impossible to minutely present all the results, so the future research may be conducted on the local units of a particular county.

Izvorni jezik
Engleski

Znanstvena područja
Matematika, Ekonomija

POVEZANOST RADA