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Public sector efficiency: evidence for new EU member states and emerging markets

Author

Listed:
  • Schuknecht, Ludger
  • Tanzi, Vito
  • Afonso, António

Abstract

In this paper we analyse public sector efficiency in the new member states of the European Union compared to that in emerging markets. After a conceptual discussion of expenditure efficiency measurement issues, we compute efficiency scores and rankings by applying a range of measurement techniques. The study finds that expenditure efficiency across new EU member states is rather diverse especially as compared to the group of top performing emerging markets in Asia. Econometric analysis shows that higher income, civil service competence and education levels as well as the security of property rights seem to facilitate the prevention of inefficiencies in the public sector. JEL Classification: C14, H40, H50

Suggested Citation

  • Schuknecht, Ludger & Tanzi, Vito & Afonso, António, 2006. "Public sector efficiency: evidence for new EU member states and emerging markets," Working Paper Series 581, European Central Bank.
    • Handle: RePEc:ecb:ecbwps:2006581
    Note: 175489
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    DEA; efficiency; emerging markets; government expenditure; new EU member states;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H40 - Public Economics - - Publicly Provided Goods - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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