The aim of this paper is to estimate efficiency measures for a sample of Catalan municipalities over an eight-year period (2005-2012) ranging from the years before the economic crisis to the start of recovery. To do this, we built a panel database for 154 municipalities with a population of from 5,000 to 50,000 inhabitants. The methodology used in the empirical analysis is a non-parametric dynamic conditional model that can be used to account for both the time dimension and a set of socioeconomic variables that might have an influence on the performance of the municipalities. The results show a remarkable decrease in efficiency levels during the years prior to the economic crisis, although this trend reversed as of 2010.

Key words: efficiency, municipalities, non-parametric models.
JEL classification: H20, H21, H24.