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Public sector efficiency: an international comparison

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Author Info
Ludger Schuknecht () (European Central Bank, Postfach 160319, 60311 Frankfurt am Main, Germany.)
Antonio Afonso () (European Central Bank, Postfach 160319, 60311 Frankfurt am Main, Germany.)
Vito Tanzi () (International Monetary Fund (IMF),Tax Policy Division Fiscal Affairs Department, 700 19th Street NW, Washington, DC 20431, United States.)

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Abstract

We compute public sector performance (PSP) and efficiency (PSE) indicators, comprising a composite and seven sub-indicators, for 23 industrialised countries. The first four sub-indicators are "opportunity" indicators that take into account administrative, education and health outcomes and the quality of public infrastructure and that support the rule of law and a level playing-field in a market economy. Three other indicators reflect the standard "Musgravian" tasks for government: allocation, distribution, and stabilisation. The input and output efficiency of public sectors across countries is then measured via a non-parametric production frontier technique. JEL Classification: C14; H50.

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Paper provided by European Central Bank in its series Working Paper Series with number 242.

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Length: 38 pages
Date of creation: Jul 2003
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Handle: RePEc:ecb:ecbwps:20030242

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Related research
Keywords: Government expenditure; efficiency; free disposable hull; production possibility frontier.;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Persson, Torsten & Tabellini, Guido, 2001. "Political Institutions and Policy Outcomes: What are the Stylized Facts?," CEPR Discussion Papers 2872, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  2. Dani Rodrik, 2000. "Institutions for High-Quality Growth: What They are and How to Acquire Them," NBER Working Papers 7540, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Tanzi, Vito & Schuknecht, Ludger, 1997. "Reconsidering the Fiscal Role of Government: The International Perspective," American Economic Review, American Economic Association, vol. 87(2), pages 164-68, May. [Downloadable!] (restricted)
  4. 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. [Downloadable!] (restricted)
  5. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November. [Downloadable!] (restricted)
  6. Philippine Cour-Thimann & Pablo Hernandez Cos & Matthias F. Mohr & Mika Tujula & Carine Bouthevillain & Geert Langenus & Sandro Momigliano & Gerrit Van Den Dool, 2001. "Cyclically adjusted budget balances: an alternative approach," Working Paper Series 077, European Central Bank. [Downloadable!]
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