Decomposing regional efficiency

Schaffer, Axel;Simar, Léopold;Rauland, Jan
(2010) , 27 pages

Files

ISBADP1042.pdf
  • Open Access
  • Adobe PDF
  • 529.48 KB

Details

Authors
  • Schaffer, AxelKarsruher Institut für Technologie
    Author
  • Author
  • Rauland, JanKarsruher Institut für Technologie
    Author
Abstract
Applying an outlier robust extension of the data envelopment analysis (DEA)followed by a geoadditive regression analysis, this study identifies and decomposes the efficiency of 439 German regions in using infrastructure and human capital. The findings show that the regions’ efficiency is driven by a spatial and a non-spatial, arguably structural factor. As a consequence, concrete regional funding schemes, shaped by best practice results, might not be appropriate for all regions. Instead, a more differentiated funding scheme that accounts for both spatial and structural factors seems more promising.
Affiliations

Citations

Schaffer, A., Simar, L., & Rauland, J. (2010). Decomposing regional efficiency (ISBA Discussion Papers 1042). https://hdl.handle.net/2078.5/208745