Efficiency of the municipalities of Mato Grosso do Sul State: an approach based in deterministic frontier

Abstract:

This article aimed to investigate the efficiency in public spending of the municipalities of the state of Mato Grosso do Sul − Brazil, covering the period between 2005 and 2016. For the analysis, we considered the following variables: administration expenses, health, education, Gross Domestic Product per capita (GDPpc), the municipal population, and the Firjan Municipal Development Index. We used as an efficiency calculation method the Data Envelopment Analysis (DEA). The empirical results showed varied efficiencies among the municipalities, within the proposed period, and the average municipal efficiencies on the map were pointed out, which showed seven municipalities in the range I; 15 municipalities in the range II; 17 municipalities in range III; and 16 municipalities in range IV. From these results, we cannot say that a higher level of efficiency can lead to an increase or decrease in the Firjan Development Index, concluding that there is inefficiency in the management of public resources, and these do not guarantee results in improving income, longevity, and education of Mato Grosso do Sul.

Keywords:
DEA; efficiency; public resources; development