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Impacts on efficiency of merging the Swedish district courts
Catholic University of Louvain, Belgium.
Linnaeus University, School of Business and Economics, Department of Economics and Statistics.ORCID iD: 0000-0003-2724-9984
Linnaeus University, School of Business and Economics, Department of Economics and Statistics. (Nationalekonomi och Statistik)
2020 (English)In: Annals of Operations Research, ISSN 0254-5330, E-ISSN 1572-9338, Vol. 288, p. 653-679Article in journal (Refereed) Published
Abstract [en]

Judicial courts form a stringent example of public services using partially sticky inputs and outputs with heterogeneous quality. Notwithstanding, governments internationally are striving to improve the efficiency of and diminish the budget spent on court systems. Frontier methods such as data envelopment analysis are sometimes used in investigations of structural changes in the form of mergers. This essay reviews the methods used to evaluate the ex post efficiency of horizontal mergers. Identification of impacts is difficult. Therefore, three analytical frameworks are applied: (1) a technical efficiency comparison over time, (2) a metafrontier approach among mergers and non-mergers, and (3) a conditional difference-in-differences approach where non-merged twins of the actual mergers are identified by matching. In addition, both time heterogeneity and sources of efficiency change are examined ex post. The method is applied to evaluate the impact on efficiency of merging the Swedish district courts from 95 to 48 between 2000 and 2009. Whereas the stated ambition for the mergers was to improve efficiency, no structured ex post analysis has been done. Swedish courts are shown to improve efficiency from merging. In addition to the particular application, this work may inform a more general discussion on public service efficiency measurement under structural changes, and their limits and potential.

Place, publisher, year, edition, pages
Springer, 2020. Vol. 288, p. 653-679
Keywords [en]
Data envelopment analysis (DEA), Efficiency, Impact evaluation, Merging effects, Public sector
National Category
Economics
Research subject
Economy, Economics
Identifiers
URN: urn:nbn:se:lnu:diva-91261DOI: 10.1007/s10479-019-03304-0OAI: oai:DiVA.org:lnu-91261DiVA, id: diva2:1388558
Available from: 2020-01-26 Created: 2020-01-26 Last updated: 2020-05-07Bibliographically approved

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Mattsson, PontusMånsson, Jonas

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