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The efficiency of social public expenditure in European countries: a two-stage analysis

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  • Maria Alessandra Antonelli
  • Valeria De Bonis

Abstract

Do European countries differ in the efficiency of their welfare policies? And which factors can account for such variability? To address these questions, we perform a two-stage efficiency analysis. First, based on a composite output indicator for social protection expenditure, we measure efficiency by means of the Free Disposable Hull and Data Envelopment Analysis techniques. Second, we perform an econometric analysis to identify the factors that can be associated to cross-country differences. We find that countries scoring higher efficiency have higher education and GDP levels, a smaller population size, a lower degree of selectivity of their welfare systems and a lower corruption level.

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  • Maria Alessandra Antonelli & Valeria De Bonis, 2019. "The efficiency of social public expenditure in European countries: a two-stage analysis," Applied Economics, Taylor & Francis Journals, vol. 51(1), pages 47-60, January.
    • Handle: RePEc:taf:applec:v:51:y:2019:i:1:p:47-60
    DOI: 10.1080/00036846.2018.1489522
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    Cited by:

    1. António Afonso & José Alves, 2023. "Are fiscal consolidation episodes helpful for public sector efficiency?," Applied Economics, Taylor & Francis Journals, vol. 55(31), pages 3547-3560, July.
    2. Rajko Tomaš, 2022. "Measurement of the Concentration of Potential Quality of Life in Local Communities," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 163(1), pages 79-109, August.
    3. Ant—nio Afonso & João Tovar Jalles & Ana Venâncio, 2023. "Government spending efficiency, measurement and applications: A cross-country efficiency dataset," Chapters, in: António Afonso & João Tovar Jalles & Ana Venâncio (ed.), Handbook on Public Sector Efficiency, chapter 3, pages 44-71, Edward Elgar Publishing.
    4. Anup Kumar Yadava & Yadawananda Neog, 2022. "Public Sector Performance and Efficiency Assessment of Indian States," Global Business Review, International Management Institute, vol. 23(2), pages 493-511, April.
    5. António Afonso & José Alves, 2022. "Does government spending efficiency improve fiscal sustainability?," Working Papers REM 2022/0226, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    6. Köppl-Turyna, Monika & Bittó, Virág & Graf, Nikolaus, 2022. "Effizienzpotenziale in der Kinderbetreuung in Österreich," Policy Notes 50, EcoAustria – Institute for Economic Research.
    7. Afonso, António & Tovar Jalles, João & Venâncio, Ana, 2022. "Do financial markets reward government spending efficiency?," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 77(C).
    8. Diogo Ferraz & Enzo B. Mariano & Daisy Rebelatto & Dominik Hartmann, 2020. "Linking Human Development and the Financial Responsibility of Regions: Combined Index Proposals Using Methods from Data Envelopment Analysis," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 150(2), pages 439-478, July.
    9. António Afonso & João Tovar Jalles & Ana Venâncio, 2021. "Taxation and Public Spending Efficiency: An International Comparison," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 63(3), pages 356-383, September.
    10. António Afonso & João Tovar Jalles & Ana Venâncio, 2023. "Government Spending and Tax Revenue Decentralization and Public Sector Efficiency: Do Natural Disasters Matter?," CESifo Working Paper Series 10424, CESifo.
    11. Lucas Menescal & José Alves, 2023. "Tax structure and public sector efficiency: new evidence for developing countries," Working Papers REM 2023/0291, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    12. Maria Alessandra Antonelli & Valeria De Bonis, 2018. "More is better with good institutions: evidence from European public social spending," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 16(2), pages 5-12, December.
    13. Mingzhu Qi & Peng Miao & Ya Wang & Yuge Song, 2022. "Research on the Coupling and Coordination of Systems of Citizenization, Regional Economy, and Public Service in China from the Perspective of Sustainable Development," Sustainability, MDPI, vol. 14(19), pages 1-17, October.
    14. Dong Jin Shin & Byung Sub Cha & Brian H.S. Kim, 2020. "Efficient Expenditure Allocation for Sustainable Public Services?—Comparative Cases of Korea and OECD Countries," Sustainability, MDPI, vol. 12(22), pages 1-19, November.
    15. Angelo Castaldo & Maria Alessandra Antonelli & Valeria De Bonis & Giorgia Marini, 2020. "Determinants of health sector efficiency: evidence from a two-step analysis on 30 OECD countries," Economics Bulletin, AccessEcon, vol. 40(2), pages 1651-1666.
    16. Maria Alessandra Antonelli & Valeria De Bonis, 2018. "Efficient social policies with higher expenditure: an analysis for European countries," Public Finance Research Papers 35, Istituto di Economia e Finanza, DSGE, Sapienza University of Rome.
    17. Tukiainen, Janne & Blesse, Sebastian & Bohne, Albrecht & Giuffrida, Leonardo M. & Jääskeläinen, Jan & Luukinen, Ari & Sieppi, Antti, 2021. "What are the priorities of bureaucrats? Evidence from conjoint experiments with procurement officials," ZEW Discussion Papers 21-033, ZEW - Leibniz Centre for European Economic Research.
    18. Maria Alessandra Antonelli & Giorgia Marini, 2023. "Good health with good institutions. An empirical analysis for italian regions," Public Finance Research Papers 61, Istituto di Economia e Finanza, DSGE, Sapienza University of Rome.
    19. António Afonso & João Tovar Jalles & Ana Venâncio, 2022. "A Tale of Government Spending Efficiency and Trust in the State," CESifo Working Paper Series 10075, CESifo.
    20. Pierre LESUISSE, 2024. "Education, public expenditure and economic growth under the prism of performance," Working Papers of BETA 2024-10, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    21. Andrea Salustri & Maria Alessandra Antonelli & Angelo Castaldo, 2023. "Uno studio dei sistemi di protezione sociale europei tramite l’analisi delle componenti principali," Public Finance Research Papers 59, Istituto di Economia e Finanza, DSGE, Sapienza University of Rome.
    22. Asma Arif & Umaima Arif, 2023. "Institutional Approach to the Budget Deficit: An Empirical Analysis," SAGE Open, , vol. 13(2), pages 21582440231, May.
    23. Pierre Lesuisse, 2022. "Education, public expenditure and economic growth under the prism of performance," Working Papers hal-03685311, HAL.
    24. López-Herrera, Carmen & Cordero, José M. & Pedraja-Chaparro, Francisco & Polo, Cristina, 2023. "Fiscal rules and their influence on public sector efficiency," MPRA Paper 119018, University Library of Munich, Germany.

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