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The efficiency of health and education expenditures in the Philippines

  • Rouselle Lavado

    ()

  • Emilyn Cabanda

    ()

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    This paper attempts to measure the efficiency of provinces in the Philippines in utilizing public resources for health and education where only 1% of the total budget is spent for health and 3% is allocated for education. With such budget constraints, it is important to examine the efficiency of spending on social services as small changes can have a major impact in achieving the Millennium Development Goals. Efficiency is defined as the deviation from the frontier which represents the maximum output attainable from each input level. This efficiency frontier is estimated using the data envelopment analysis, free disposal hull and Malmquist-DEA. We use expenditures for social services for input and primary and secondary enrollment rates, literacy rate per province, and life expectancy for outputs. An analysis of efficiency scores shows that provinces where the level of inequality is higher (as measured by the Gini coefficient) as well as those who receive a larger portion of their budget as grants are among the least efficient. This research can help in the budget allocation and rationalization among Philippine provinces. Copyright Springer-Verlag 2009

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    File URL: http://hdl.handle.net/10.1007/s10100-009-0095-1
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    Article provided by Springer & Slovak Society for Operations Research & Hungarian Operational Research Society & Czech Society for Operations Research & Österr. Gesellschaft für Operations Research (ÖGOR) & Slovenian Society Informatika - Section for Operational Research & Croatian Operational Research Society in its journal Central European Journal of Operations Research.

    Volume (Year): 17 (2009)
    Issue (Month): 3 (September)
    Pages: 275-291

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    Handle: RePEc:spr:cejnor:v:17:y:2009:i:3:p:275-291
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    1. Ravallion, Martin, 2005. "On Measuring Aggregate "Social Efficiency."," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 273-92, January.
    2. van de Sijpe, Nicolas & Rayp, Glenn, 2005. "Measuring and Explaining Government Inefficiency in Developing Countries," Proceedings of the German Development Economics Conference, Kiel 2005 32, Verein für Socialpolitik, Research Committee Development Economics.
    3. 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.
    4. 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.
    5. repec:cor:louvrp:-571 is not listed on IDEAS
    6. Grosskopf, Shawna & Moutray, Chad, 2001. "Evaluating performance in Chicago public high schools in the wake of decentralization," Economics of Education Review, Elsevier, vol. 20(1), pages 1-14, February.
    7. 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.
    8. 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.
    9. Johnes, Jill, 1996. "Performance assessment in higher education in Britain," European Journal of Operational Research, Elsevier, vol. 89(1), pages 18-33, February.
    10. Jacobs,Rowena & Smith,Peter C. & Street,Andrew, 2006. "Measuring Efficiency in Health Care," Cambridge Books, Cambridge University Press, number 9780521851442, November.
    11. Johnes, Jill & Johnes, Geraint, 1995. "Research funding and performance in U.K. University Departments of Economics: A frontier analysis," Economics of Education Review, Elsevier, vol. 14(3), pages 301-314, September.
    12. António Afonso & Ludger Schuknecht & Vito Tanzi, 2005. "Public sector efficiency: An international comparison," Public Choice, Springer, vol. 123(3), pages 321-347, June.
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