Abstract
In this study, the nature and extent of efficiency and productivity growth in Australian local government is investigated using nonpara-metric frontier technique. Employing Malmquist indices, productivity growth is decomposed into technical efficiency change and technological change for two important local government functions: domestic waste management and recycling services and planning and regulatory services. The results indicate that there was little or no productivity growth at the frontier during the period in question although there was substantial improvement in the relative efficiency of nearly all councils in both functions. That productivity growth which did occur appears largely due to and increase in efficiency over the period with improvements in scale efficiency dominating for larger, urban developed councils and improvements in technical efficiency being notable for smaller, rural agricultural councils.
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