Peter Bogetoft receives 5 mio Rockwool Foundation Grant

ECON’s Professor Peter Bogetoft has received a 5 mio Rockwool Foundation Grant to develop new ways to measure performance of the municipality sector. One approach is based on a benefit-of-the-doubt DEA approach with weight restrictions. It applies a non-parametric aggregation of 40+ performances measures that are corrected for socio-economic conditions. The other approach is based on hedonic pricing models. The idea is that citizens as taxpayers and consumers of local government services respond to differences in efficiency between the municipalities. This implies that municipal performance is capitalized into property values.