“…The first one focuses on the provision of services by municipalities using frontier models (usually data envelopment analysis) to assess LGs' technical and cost efficiency (Afonso & Fernandes, 2006;Lin, Lee, & Ho, 2011;Rogge & De Jaeger, 2013), evaluate specific services provided by LGs (Chang, Liu, & Yeh, 2013), and develop budget plans using optimization models and multi-criteria techniques (Doumpos & Cohen, 2014;Gomez, Rios Insua, Lavin, & Alfaro, 2013). The second research strand is about predicting instances of financial distress of LGs (Garcia-Sanchez, Cuadrado-Ballesteros, Frias-Aceituno, & Mordan, 2012; Kloha, Weissert, & Kleine, 2005;Zafra-Gómez, Lopez-Hernández, & Hernández-Bastida, 2009b).…”