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Efficiency of Government Social Spending in Croatia

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  • Etibar Jafarov

    (International Monetary Fund, Washington, USA)

  • Victoria Gunnarsson

    (International Monetary Fund, Washington, USA)

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    Abstract

    This paper analyzes the relative efficiency of social spending and service delivery in Croatia by comparing social spending and key social (outcome) indicators in Croatia to those of comparator countries. The analysis finds evidence of significant inefficiencies in Croatia’s social spending, mainly related to inadequate cost recovery for health and education services, weaknesses in the financing mechanisms and institutional arrangements, weak competition in the provision of social services, and weaknesses in targeting benefits. The paper also identifies areas for cost recovery and reform.

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    File URL: http://www.ijf.hr/eng/FTP/2008/3/jafarov.pdf
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    Bibliographic Info

    Article provided by Institute of Public Finance in its journal Financial Theory and Practice.

    Volume (Year): 32 (2008)
    Issue (Month): 3 ()
    Pages: 289-320

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    Handle: RePEc:ipf:finteo:v:32:y:2008:i:3:p:289-320

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    Related research

    Keywords: Expenditure efficiency; health care spending; education spending; social protection spending;

    References

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    1. António Afonso & Miguel St. Aubyn, 2004. "Non-parametric Approaches to Education and Health Expenditure Efficiency in OECD Countries," Working Papers Department of Economics 2004/01, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
    2. Gupta, Sanjeev & Verhoeven, Marijn, 2001. "The efficiency of government expenditure: experiences from Africa," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 433-467, May.
    3. Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Public sector efficiency: evidence for new EU member states and emerging markets," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
    4. Herrera, Santiago & Pang, Gaobo, 2005. "Efficiency of public spending in developing countries : an efficiency frontier approach," Policy Research Working Paper Series 3645, The World Bank.
    5. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
    6. Victoria Gunnarsson & Sergio Lugaresi & Marijn Verhoeven, 2007. "The Health Sector in the Slovak Republic," IMF Working Papers 07/226, International Monetary Fund.
    7. COELLI, Tim & LEFEBVRE, Mathieu & PESTIEAU, Pierre, 2008. "Social protection performance in the European Union: comparison and convergence," CORE Discussion Papers 2008012, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    8. Todd D. Mattina & Victoria Gunnarsson, 2007. "Budget Rigidity and Expenditure Efficiency in Slovenia," IMF Working Papers 07/131, International Monetary Fund.
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