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Government Spending on Health Care and Education in Croatia: Efficiency and Reform Options

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  • Ms. Victoria Gunnarsson
  • Mr. Etibar Jafarov

Abstract

This paper assesses the relative efficiency of government spending on health care and education in Croatia by using the so-called Data Envelopment Analysis. The analysis finds evidence of significant inefficiencies in Croatia's spending on health care and education, related to inadequate cost recovery, weaknesses in the financing mechanisms and institutional arrangements, weak competition in the provision of these services, and weaknesses in targeting public subsidies on health care and education. These inefficiencies suggest that government spending on health and education could be reduced without undue sacrifices in the quality of these services. The paper identifies ways to do that.

Suggested Citation

  • Ms. Victoria Gunnarsson & Mr. Etibar Jafarov, 2008. "Government Spending on Health Care and Education in Croatia: Efficiency and Reform Options," IMF Working Papers 2008/136, International Monetary Fund.
    • Handle: RePEc:imf:imfwpa:2008/136
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    References listed on IDEAS

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    9. COELLI, Tim & LEFEBVRE, Mathieu & PESTIEAU, Pierre, 2008. "Social protection performance in the European Union: comparison and convergence," LIDAM Discussion Papers CORE 2008012, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

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    2. Douanla Tayo Lionel, 2015. "Determinants of Health Spending Efficiency: a Tobit Panel Data Approach Based on DEA Efficiency Scores," Acta Universitatis Danubius. OEconomica, Danubius University of Galati, issue 11(4), pages 56-71, August.
    3. Lilia Yotova & Kristina Stefanova, 2017. "Efficiency of Tertiary Education Expenditure in CEE Countries: Data Envelopment Analysis," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 352-364, September.
    4. Achmad Solihin & Djoko Mursinto & Lilik Sugiharti, 2017. "Efficiency and Effectiveness of Government Expenditure on Education at Districts/Cities Level in East Java Indonesia," Asian Social Science, Canadian Center of Science and Education, vol. 13(8), pages 1-91, August.
    5. Cheick Camara, 2023. "Gender Budgeting and Health Spending Efficiency in Indian States: A Staggered Difference-in-Differences Analysis," CERDI Working papers hal-04294262, HAL.
    6. Kristina Stefanova & Nikolay Velichkov, 2020. "Analysis of the Efficiency of Tertiary Education Expenditure in European Union Member States from Central and Eastern Europe: An Efficiency Frontier Approach," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 18(1), pages 115-128.
    7. Tumaniants, Karen A. (Туманянц, Карэн) & Sesina, Julia E. (Сесина, Юлия), 2017. "Social Expenditures of Russian Regions in Terms of “Input-Output” [Расходы На Социальную Политику Российских Регионов В Координатах «Затраты — Результат»]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 128-149, October.
    8. Krasnopjorovs, Olegs, 2013. "Latvijas ekonomikas izaugsmi noteicošie faktori [Factors of Economic Growth in Latvia]," MPRA Paper 47550, University Library of Munich, Germany.
    9. Anton Sorin Gabriel, 2013. "Technical Efficiency in the Use of Health Care Resources: A Cross-Country Analysis," Scientific Annals of Economics and Business, Sciendo, vol. 60(1), pages 1-12, July.
    10. Aristovnik, Aleksander & Obadić, Alka, 2014. "Measuring relative efficiency of secondary education in selected EU and OECD countries: the case of Slovenia and Croatia," MPRA Paper 63936, University Library of Munich, Germany.
    11. Amine Lahiani & Ameni Mtibaa & Foued Gabsi, 2022. "Fiscal Consolidation, Social Sector Expenditures and Twin Deficit Hypothesis: Evidence from Emerging and Middle-Income Countries," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 64(4), pages 710-747, December.
    12. Aleksander Aristovnik, 2014. "Relative Efficiency Of Primary Education: An International Comparison," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 17-24.
    13. 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.
    14. Brieuc Monfort, 2015. "Can Increased Public Expenditure Efficiency Contribute to the Consolidation of Public Finances in Japan?," Working Papers halshs-01548620, HAL.
    15. Alka Obadić & Aleksander Aristovnik, 2011. "Relative efficiency of higher education in Croatia and Slovenia: an international comparison," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(30), pages 362-376, June.
    16. 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 1-4, June.
    17. Krasnopjorovs, Olegs, 2009. "Latvijas valdības izdevumu efektivitātes novērtējums [Measuring of public spending efficiency in Latvia]," MPRA Paper 47581, University Library of Munich, Germany.
    18. Aleksander Aristovnik, 2011. "The relative efficiency of education and R&D expenditures in the new EU member states," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 13(5), pages 832-848, August.

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