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Government Spendingon Health Care and Education in Croatia; Efficiency and Reform Options

  • Victoria Gunnarsson
  • Etibar Jafarov
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    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.

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    File URL: http://www.imf.org/external/pubs/cat/longres.aspx?sk=21978
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    Paper provided by International Monetary Fund in its series IMF Working Papers with number 08/136.

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    Length: 34
    Date of creation: 01 May 2008
    Date of revision:
    Handle: RePEc:imf:imfwpa:08/136
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    1. 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.
    2. Bernard Funck, 2003. "Expenditure Policies Toward EU Accession," World Bank Publications, The World Bank, number 15173.
    3. 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.
    4. António Afonso & Ludger Schuknecht & Vito Tanzi, 2006. "Public Sector Efficiency: Evidence for New EU Member States and Emerging Markets," Working Papers Department of Economics 2006/01, ISEG - School of Economics and Management, Department of Economics, University of Lisbon.
    5. Todd D. Mattina & Victoria Gunnarsson, 2007. "Budget Rigidity and Expenditure Efficiency in Slovenia," IMF Working Papers 07/131, International Monetary Fund.
    6. 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).
    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. 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.
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