The incidence of participation citizen in efficiency: The case of the municipal social infrastructure fund (FISM) in Hidalgo

Abstract

Citizen participation is a central aspect of democracy. It is a mechanism for the empowerment of citizens that allows it to be expanded. In order to generate empirical evidence on its impact on the efficiency of public administrations, we have, with a prior conceptual, theoretical, methodological and instrumental framework, investigated its results in the Municipal Social Infrastructure Fund (FISM) received by the municipalities of Hidalgo. We sought to answer questions such as: will municipal efficiency improve if citizens are included in decisions? What kind of citizen participation -consultative, deliberative or evaluative- influences financial efficiency the most? These questions were answered through an econometric methodology that uses panel data with a Random Effects Model (REM). The result obtained showed that evaluative citizen participation favors local financial efficiency in Hidalgo.