Measuring productive performance using binary and ordinal output variables: the case of the Swedish fire and rescue services

Fire protection is an example of a complex production process. This study measures efficiency by constructing binary and ordinal output variables from information on residential fires in Sweden about how a fire spreads from when the fire and rescue brigade arrives to when a fire is suppressed. The motivations behind this study are that there are only a few studies trying to estimate production efficiency for fire and rescue services, that data on a more detailed level is interesting for some public services, and there is a need to be able to measure efficiency differences even if only a binary or ordinal output variable is available. Using a logit random parameter model, the random effects are interpreted as efficiency differences. The conclusions are that fire and rescue services with a more flexible fire organisation with first response persons, working in collaboration with other municipalities and with larger populations are more efficient.