Abstract
The objective of this study is to estimate the relative efficiency of the municipalities of the Mexican State of Jalisco and evaluate its relationship with the intergovernmental grants in 1990, 2000, and 2010. The relative efficiency of the municipalities is estimated using Data Envelopment Analysis (dea) methodology. The assumptions of efficiency measurement analysis focus on the minimization of inputs with variable returns to scale. The considered inputs are personnel services, material and other inputs, and general services. Outputs are capital investment and tax and fees collection. By comparability the monetary variables are expressed at constant prices per capita. We found no statistical difference between efficient and ineffiicient municipalities regarding to intergovernmental grants. The results suggest that there is no incentive for ineffiicient municipalities to change their status. Additionally, results suggest that municipalities of the State of Jalisco are having an increase on their incomes due to fees.
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