We address the efficiency of expenditure in education and health sectors for a sample of OECD countries by applying two alternative non-parametric methodologies: FDH and DEA. Those are two areas where public expenditure is of great importance so that findings have strong implications in what concerns public sector efficiency. When estimating the efficiency frontier we use both measures of expenditure and quantity inputs. We believe this approach to be advantageous since a country may well be efficient from a technical point of view but appear as inefficient if the inputs it uses are expensive. Efficient outcomes across sectors and analytical methods seem to cluster around a small number of core countries, even if for different reasons: Finland, Japan, Korea and Sweden.
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Paper provided by Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon. in its series Working Papers with number
2004/01.
Length: Date of creation: 2004 Date of revision: Handle: RePEc:ise:isegwp:wp12004
Contact details of provider: Postal: Department of Economics, School of Economics and Management (ISEG), Technical University of Lisbon, Rua do Quelhas 6, 1200-781 LISBON, PORTUGAL Web page: http://www.iseg.utl.pt/departamentos/economia/
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Find related papers by JEL classification: I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health I21 - Health, Education, and Welfare - - Education - - - Analysis of Education I28 - Health, Education, and Welfare - - Education - - - Government Policy H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
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Lee, Jong-Wha & Barro, Robert J, 2001.
"Schooling Quality in a Cross-Section of Countries,"
Economica,
London School of Economics and Political Science, vol. 68(272), pages 465-88, November.
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Pierre Pestieau, 2007.
"Assessing the performance of the public sector,"
CREPP Working Papers
0703, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
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