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Relative Efficiency of Education Expenditures in Eastern Europe: A Non-parametric Approach

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  • Aleksander Aristovnik

    (University of Ljubljana, Faculty of Administration)

Abstract

The article attempts to measure relative efficiency in utilizing public education expenditures in the new EU member states in comparison to the selected EU (plus Croatia) and OECD countries. As resources allocated to education are significantly limited, a special emphasis should be given to their efficient use regarding the institutional and legal constraints. By applying non-parametric methodology, i.e. Data Envelopment Analysis (DEA), a relative efficiency is defined as the deviation from the efficiency frontier which represents the maximum output/outcome attainable from each input level. An analysis of (output-oriented) efficiency measures shows that among the new EU member states Hungary, Estonia and Slovenia seem to be good benchmark countries in the field of primary, secondary and tertiary education, respectively. The empirical results also suggest that, in general, new EU member states show relatively high efficiency in tertiary education efficiency measures.

Suggested Citation

  • 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.
    • Handle: RePEc:spp:jkmeit:1379
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    1. 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.
    2. Ahec Šonje, Amina & Deskar-Škrbić, Milan & Šonje, Velimir, 2018. "Efficiency of public expenditure on education: comparing Croatia with other NMS," MPRA Paper 85152, University Library of Munich, Germany, revised 10 Feb 2018.
    3. Legenzova Renata & Gaigalienė Asta & Rudytė Dalia & Skunčikienė Solveiga & Kazlauskienė Vilma, 2023. "Assessment of public education expenditure efficiency across Lithuanian municipalities," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 19(4), pages 63-79, December.
    4. Ozana Nadoveza Jelic & Margareta Gardijan Kedzo, 2018. "Efficiency vs effectiveness: an analysis of tertiary education across Europe," Public Sector Economics, Institute of Public Finance, vol. 42(4), pages 381-414.
    5. 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.
    6. Juliana Arias & Alejandro Torres, 2018. "Economic efficiency of public secondary education expenditure: How different are developed and developing countries?," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, vol. 80(4), pages 119-154, February.

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