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The effectiveness and efficiency of public spending

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  • Ulrike Mandl
  • Adriaan Dierx
  • Fabienne Ilzkovitz

Abstract

This paper shows that the efficiency in public services more generally and in public spending on education and R&D in particular varies significantly between countries. The paper, however, also illustrates the difficulties of measuring efficiency and effectiveness. Progress has been made in developing the necessary measurement techniques, but there is a lack of suitable data to apply those techniques. Good quality data are needed because the techniques available to measure efficiency are sensitive to outliers and may be influenced by exogenous factors. Against this background, analyses based upon individual spending areas seem to be a more promising approach to measure efficiency and effectiveness on a cross-country basis.

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File URL: http://ec.europa.eu/economy_finance/publications/publication11902_en.pdf
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Bibliographic Info

Paper provided by Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission in its series European Economy - Economic Papers with number 301.

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Length: 36 pages
Date of creation: Feb 2008
Date of revision:
Handle: RePEc:euf:ecopap:0301

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Related research

Keywords: The effectiveness and efficiency of public spending; education spending; R&D spending; efficiency frontier; public administration; input; output; environmental factors; Mandl; Dierx; Ilzkovitz;

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Citations

Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Is government better at R & D?
    by noreply@blogger.com (David Zetland) in Aguanomics on 2012-09-11 11:30:00
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
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Cited by:
  1. Mireille Elbaum, 2009. "Les indicateurs de performance en matière de politiques sociales : quel sens pour l’action publique ?," Documents de Travail de l'OFCE 2009-16, Observatoire Francais des Conjonctures Economiques (OFCE).
  2. Jesse Stroobants & Geert Bouckaert, 2013. "Towards Measurable and Auditable Efficiency Gains in the Flemish Public Sector," Public Organization Review, Springer, vol. 13(3), pages 245-260, September.
  3. Aristovnik, Aleksander, 2012. "The impact of ICT on educational performance and its efficiency in selected EU and OECD countries: a non-parametric analysis," MPRA Paper 39805, University Library of Munich, Germany.
  4. Aleksander Aristovnik, 2013. "Relative Efficiency of Education Expenditures in Eastern Europe: A Non-parametric Approach," Journal of Knowledge Management, Economics and Information Technology, ScientificPapers.org, vol. 3(3), pages 4, June.
  5. World Bank, 2011. "Russian federation : Social Expenditure and Fiscal Federalism in Russia," World Bank Other Operational Studies 2735, The World Bank.
  6. Mihaiu, Diana Marieta & Opreana, Alin & Cristescu, Marian Pompiliu, 2010. "Efficiency, Effectiveness and Performance of the Public Sector," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(4), pages 132-147, December.
  7. Jana Soukopova & Eduard Bakoš, 2013. "Environmental protection expenditure: Ex-post evaluation," Working Papers 08, Masaryk University, Faculty of Economics and Administration, Department of Public Economics, revised Apr 2013.
  8. Francesco Grigoli, 2012. "Public Expenditure in the Slovak Republic," IMF Working Papers 12/173, International Monetary Fund.
  9. Andrés Felipe SALAZAR CUELLAR, 2014. "The Efficiency of Education Expenditure in Latin America and Lessons for Colombia," ARCHIVOS DE ECONOMÍA 011209, DEPARTAMENTO NACIONAL DE PLANEACIÓN.
  10. Mihai Mutascu & Marius Milos, 2009. "Optimal Size Of Government Spending. The Case Of European Union Member States," Annales Universitatis Apulensis Series Oeconomica, Faculty of Sciences, "1 Decembrie 1918" University, Alba Iulia, vol. 1(11), pages 45.

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