Local governments' efficiency: a systematic literature review - Part II

The efficient management of the available resources in local governments has been a topic of high interest in the field of public sector. We provide an extensive and comprehensive review of the existing literature on local governments' efficiency from a global point of view, covering all articles from 1990 to August 2016. This paper is the second of two. It covers the aspects related to local governments' efficiency measurement along with its determinants, that is, taking into account the effect of environmental variables over efficiency. First, we describe which techniques have been used to incorporate environmental variables in the context of local governments. Second, we provide a classification for the determinants used and summarize their impact on efficiency. Finally, we discuss some operative directions and considerations for further research in the field.