Advanced Search
MyIDEAS: Login

Public Expenditure Efficiency Analysis Based On Cost Benefit Analysis

Contents:

Author Info

  • Diana Mihaiu

    (Lucian Blaga University of Sibiu)

Abstract

Measuring the effectiveness of the public expenditure is essential in the analysis of the public sector’s performance, the efficiency being an indicator of the performance. Cost benefit analysis is a method of measuring the efficiency of public spending, but has certain deficiencies, which we reported in the paper. The purpose of the cost-benefit analysis is to show, based on the results expected, if the investment, hence the public expenditure, is appropriate or not, and to lead to identifying the best choice, the one with the highest efficiency. The cost – benefit analysis must take into account all the benefits, not just the economical ones, based on the economical, social and environmental impact studies, then trying a monetary quantification of the effects, although in some areas this is more difficult to realize; so that eventually it can be concluded if the investment is worthwhile and if it brings a contribution to increasing the social welfare. The cost-benefit analysis is an effective tool for making decisions regarding spending the public money in the public sector, but which may have some errors, such as errors of omission, of forecasting, of evaluation and measurement. The quality and accuracy of the CBA depends also on the skill and good will of the analyst and on the complexity of the project. The cost-benefit analysis offers great results regarding the investments that have a strong economical component, or whose costs and benefits can be easily quantified.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://eccsf.ulbsibiu.ro/RePEc/blg/journl/5110mihaiu.pdf
Download Restriction: no

Bibliographic Info

Article provided by Lucian Blaga University of Sibiu, Faculty of Economic Sciences in its journal Studies in Business and Economics.

Volume (Year): 5 (2010)
Issue (Month): 1 (april)
Pages: 113-125

as in new window
Handle: RePEc:blg:journl:v:5:y:2010:i:1:p:113-125

Contact details of provider:
Postal: Lucian Blaga University of Sibiu, Faculty of Economic Sciences Dumbravii Avenue, No 17, postal code 550324, Sibiu, Romania
Phone: 004 0269 210375
Fax: 004 0269 210375
Email:
Web page: http://economice.ulbsibiu.ro/
More information through EDIRC

Related research

Keywords: public spending; cost-benefit analysis; efficiency; public sector;

References

No references listed on IDEAS
You can help add them by filling out this form.

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:blg:journl:v:5:y:2010:i:1:p:113-125. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mihaela Herciu).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.