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Government Spending on Health Care and Education in Croatia; Efficiency and Reform Options

Author

Listed:
  • Victoria Gunnarsson
  • Etibar Jafarov

Abstract

This paper assesses the relative efficiency of government spending on health care and education in Croatia by using the so-called Data Envelopment Analysis. The analysis finds evidence of significant inefficiencies in Croatia's spending on health care and education, related to inadequate cost recovery, weaknesses in the financing mechanisms and institutional arrangements, weak competition in the provision of these services, and weaknesses in targeting public subsidies on health care and education. These inefficiencies suggest that government spending on health and education could be reduced without undue sacrifices in the quality of these services. The paper identifies ways to do that.

Suggested Citation

  • Victoria Gunnarsson & Etibar Jafarov, 2008. "Government Spending on Health Care and Education in Croatia; Efficiency and Reform Options," IMF Working Papers 08/136, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:08/136
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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=21978
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    References listed on IDEAS

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    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. 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.
    4. 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.
    5. Bernard Funck, 2003. "Expenditure Policies Toward EU Accession," World Bank Publications, The World Bank, number 15173.
    6. Todd D. Mattina & Victoria Gunnarsson, 2007. "Budget Rigidity and Expenditure Efficiency in Slovenia," IMF Working Papers 07/131, International Monetary Fund.
    7. 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.
    8. 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).
    9. Victoria Gunnarsson & Stéphane Carcillo & Marijn Verhoeven, 2007. "Education and Health in G7 Countries; Achieving Better Outcomes with Less Spending," IMF Working Papers 07/263, International Monetary Fund.
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    Citations

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    Cited by:

    1. Alka Obadić & Aleksander Aristovnik, 2011. "Relative efficiency of higher education in Croatia and Slovenia: an international comparison," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 13(30), pages 362-376, June.
    2. Olanubi, Sijuola Orioye & Osode, Oluwanbepelumi Esther, 2017. "The efficiency of government spending on health: A comparison of different administrations in Nigeria," Journal of Policy Modeling, Elsevier, vol. 39(1), pages 79-98.
    3. repec:rnp:ecopol:ep1757 is not listed on IDEAS
    4. Brieuc Monfort, 2015. "Can Increased Public Expenditure Efficiency Contribute to the Consolidation of Public Finances in Japan?," Working Papers halshs-01548620, HAL.

    More about this item

    Keywords

    Croatia; Education spending; Education; Expenditure efficiency; Government expenditures; Health care spending; health care; health spending; hospital beds;

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