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Budget Rigidity and Expenditure Efficiency in Slovenia

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  • Todd D. Mattina
  • Victoria Gunnarsson
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    Abstract

    This paper assesses the relative efficiency and flexibility of public spending in Slovenia compared to the advanced and new EU member states. Spending on health care, education, and social protection is relatively high in Slovenia without achieving correspondingly better outcomes. Inefficiencies appear to stem from the financing mechanisms for social services, institutional arrangements, and the weak targeting of social benefits. In addition, the composition of spending appears to be strongly tilted towards nondiscretionary items that reduce the fiscal room for maneuver. Greater flexibility is needed to facilitate the reallocation of relatively inefficient expenditure into higher priorities. In this manner, medium-term expenditure rationalization can focus on reducing inefficient outlays rather than restraining traditionally flexible components of the budget, such as public investment.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 07/131.

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    Length: 29
    Date of creation: 01 Jun 2007
    Date of revision:
    Handle: RePEc:imf:imfwpa:07/131

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    Related research

    Keywords: Government expenditures; Budgetary policy; Public investment; expenditure; public spending; health spending; health care; expenditures; public expenditure; expenditure rationalization; public health; public health spending; expenditure efficiency; health insurance; budget process; medium-term expenditure; health sector; social expenditures; income households; health care providers; expenditure categories; health care spending; insurance system; capital spending; composition of expenditure; private insurers; health clinics; fiscal policy; short-term expenditure; administrative costs; health financing; public expenditure efficiency; health care financing; primary care doctors; budget target; competition among providers; health care reform; healthcare services; public expenditure adjustment; expenditure data; health insurers; expenditure items; private insurance; health care efficiency; primary health care; public health care; adverse selection; composition of public spending; health indicators; social protection expenditures; efficiency of government expenditure; health care system; primary care; health care services; capital investments; hospital services; moral hazard; hospital financing; expenditure assignments; government expenditure; financial incentive; total expenditure; higher expenditure; public insurance; private spending;

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    References

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    1. Robert J. Hodrick & Edward Prescott, 1981. "Post-War U.S. Business Cycles: An Empirical Investigation," Discussion Papers 451, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    2. Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Public sector efficiency: evidence for new EU member states and emerging markets," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
    3. António Afonso & Miguel St. Aubyn, 2004. "Non-parametric Approaches to Education and Health Expenditure Efficiency in OECD Countries," Working Papers Department of Economics 2004/01, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
    4. Simar, Leopold & Wilson, Paul W., 2007. "Estimation and inference in two-stage, semi-parametric models of production processes," Journal of Econometrics, Elsevier, vol. 136(1), pages 31-64, January.
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    Cited by:
    1. Victoria Gunnarsson & Etibar Jafarov, 2008. "Government Spendingon Health Care and Education in Croatia," IMF Working Papers 08/136, International Monetary Fund.
    2. Vratislav Izák, 2011. "The Welfare State and Economic Growth," Prague Economic Papers, University of Economics, Prague, vol. 2011(4), pages 291-308.
    3. Misch, Florian & Gemmell, Norman & Kneller, Richard, 2014. "Complementarity in Models of Public Finance and Endogenous Growth," Working Paper Series 3136, Victoria University of Wellington, Chair in Public Finance.
    4. Tatjana Slavova, 2008. "A rank order and efficiency evaluation of the EU regions in a social framework," Empirica, Springer, vol. 35(4), pages 339-367, September.
    5. Etibar Jafarov & Victoria Gunnarsson, 2008. "Efficiency of Government Social Spending in Croatia," Financial Theory and Practice, Institute of Public Finance, vol. 32(3), pages 289-320.

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