Local Government Efficiency: Evidence from Western Australia. (1st September 2013)

• Record Type: Journal Article
• Authors: Fogarty, James; Mugera, Amin
• Is Part Of: Australian economic review. Volume 46:Number 3(2013:Sep.)
• Page Start: 300
• Page End: 311
• Publication Date: 2013-09-01
• Subjects: Economics -- Periodicals; Australia -- Economic conditions -- Periodicals; Australia -- Economic policy -- Periodicals; Australia -- Economic conditions -- 1945-; Économie politique -- Périodiques; Australie -- Conditions économiques -- Périodiques; Australie -- Politique économique -- Périodiques; Australie -- Conditions économiques -- 1945- -- Périodiques; 330.994005
• DOI: 10.1111/j.1467-8462.2013.12015.x
• Languages: English
• ISSNs: 0004-9018

Abstract

Abstract: The state government of Western Australia has suggested there are economies of scale in local government service delivery and that council amalgamations would allow substantial efficiencies to be realised. In this article, the Data Envelopment Analysis method is used to measure efficiency at 98 local councils in Western Australia in 2009 and 2010. Although many councils were found to be operating under increasing returns to scale, many others were found to be operating under decreasing returns to scale. This suggests there is room for either scaling down or expanding for some local councils to achieve optimal scale .