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Public sector efficiency: leveling the playing field between OECD countries

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  • Antonis Adam
  • Manthos Delis
  • Pantelis Kammas

    ()

Abstract

In this paper we seek a robust methodology to measure the relative public spending efficiency of 19 OECD countries over the period 1980-2000. Based on the functional classification of government expenditure, we decompose total public spending into its separate accounts and we employ a semi-parametric method to obtain relative efficiency scores (for the separate accounts as well as for aggregate public spending). The econometric method isolates the impact of government inefficiency from the inefficiency arising from the socioeconomic environment or luck, thus leveling the playing field between the examined countries. The results suggest that the quality of governance is more important than the socioeconomic environment or luck. Finally, we propose a technique to measure the allocative efficiency of public spending, in an effort to proxy the optimal allocation of public funds when the governments set specific targets.

(This abstract was borrowed from another version of this item.)

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Bibliographic Info

Article provided by Springer in its journal Public Choice.

Volume (Year): 146 (2011)
Issue (Month): 1 (January)
Pages: 163-183

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Handle: RePEc:kap:pubcho:v:146:y:2011:i:1:p:163-183

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Web page: http://www.springerlink.com/link.asp?id=100332

Related research

Keywords: Public sector efficiency; Stochastic DEA; Political determinants of efficiency; C14; H11; H50;

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References

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  1. Balaguer-Coll, Maria Teresa & Prior, Diego & Tortosa-Ausina, Emili, 2007. "On the determinants of local government performance: A two-stage nonparametric approach," European Economic Review, Elsevier, vol. 51(2), pages 425-451, February.
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  11. Adam, Antonis & Delis, Manthos D & Kammas, Pantelis, 2012. "Fiscal decentralization and public sector efficiency: Evidence from OECD countries," MPRA Paper 36889, University Library of Munich, Germany.
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  16. Glenn Rayp & Nicolas Van De Sijpe, 2007. "Measuring and explaining government efficiency in developing countries," Journal of Development Studies, Taylor & Francis Journals, vol. 43(2), pages 360-381.
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Citations

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Cited by:
  1. Stephanie Meinhard & Niklas Potrafke, 2012. "The Globalization–Welfare State Nexus Reconsidered," Review of International Economics, Wiley Blackwell, vol. 20(2), pages 271-287, 05.
  2. Sok-Gee Chan Mohd & Zaini Abd Karim, 2012. "Public Spending Efficiency And Political And Economic Factors: Evidence From Selected East Asian Countries," Economic Annals, Faculty of Economics, University of Belgrade, vol. 57(193), pages 7-24, April- Ju.
  3. Antonis Adam & Manthos D. Delis & Pantelis Kammas, 2008. "Fiscal Decentralization and Public Sector Efficiency: Evidence from OECD Countries," CESifo Working Paper Series 2364, CESifo Group Munich.

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