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Efficiency of Government Social Spending in Croatia

Author

Listed:
  • Etibar Jafarov

    (International Monetary Fund, Washington, USA)

  • Victoria Gunnarsson

    (International Monetary Fund, Washington, USA)

Abstract

This paper analyzes the relative efficiency of social spending and service delivery in Croatia by comparing social spending and key social (outcome) indicators in Croatia to those of comparator countries. The analysis finds evidence of significant inefficiencies in Croatia’s social spending, mainly related to inadequate cost recovery for health and education services, weaknesses in the financing mechanisms and institutional arrangements, weak competition in the provision of social services, and weaknesses in targeting benefits. The paper also identifies areas for cost recovery and reform.

Suggested Citation

  • 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.
  • Handle: RePEc:ipf:finteo:v:32:y:2008:i:3:p:289-320
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    File URL: http://www.ijf.hr/eng/FTP/2008/3/jafarov.pdf
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    References listed on IDEAS

    as
    1. 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 - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    2. Victoria Gunnarsson & Sergio Lugaresi & Marijn Verhoeven, 2007. "The Health Sector in the Slovak Republic; Efficiency and Reform," IMF Working Papers 07/226, International Monetary Fund.
    3. Gupta, Sanjeev & Verhoeven, Marijn, 2001. "The efficiency of government expenditure: experiences from Africa," Journal of Policy Modeling, Elsevier, vol. 23(4), pages 433-467, May.
    4. 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.
    5. Herrera, Santiago & Pang, Gaobo, 2005. "Efficiency of public spending in developing countries : an efficiency frontier approach," Policy Research Working Paper Series 3645, The World Bank.
    6. Bernard Funck, 2003. "Expenditure Policies Toward EU Accession," World Bank Publications, The World Bank, number 15173.
    7. Todd D. Mattina & Victoria Gunnarsson, 2007. "Budget Rigidity and Expenditure Efficiency in Slovenia," IMF Working Papers 07/131, International Monetary Fund.
    8. 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.
    9. COELLI, Tim & LEFEBVRE, Mathieu & PESTIEAU, Pierre, 2008. "Social protection performance in the European Union: comparison and convergence," CORE Discussion Papers 2008012, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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    Cited by:

    1. Vojmir Franičević & Teo Matković, 2013. "Croatia: Public sector adaptation and its impact on working conditions," Chapters,in: Public Sector Shock, chapter 4, pages 134-173 Edward Elgar Publishing.

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