Measuring Public Sector Performance: A Four Quadrants Model to Monitor Local Governments’ Efficiency

This chapter is focused on the construction of a model where the evaluation of Standard Expenditure Needs can be complemented with the estimation of Standard Level of Services so as to transform the gap between standard and historical expenditures to a good signal for the Local Governments performance. Nevertheless, the chapter provides important policy implications since our model can overcome some of the pitfalls of previous performance assessments.