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Public sector efficiency: an international comparison

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  • Schuknecht, Ludger
  • Tanzi, Vito
  • Afonso, António

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

Suggested Citation

  • Schuknecht, Ludger & Tanzi, Vito & Afonso, António, 2003. "Public sector efficiency: an international comparison," Working Paper Series 242, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:2003242
    Note: 175489
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    References listed on IDEAS

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    More about this item

    Keywords

    efficiency; free disposable hull; government expenditure; production possibility frontier;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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