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The efficiency frontier as a method for gauging the performance of public expenditure : a Belgian case study

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  • Bruno Eugène

    () (National Bank of Belgium, Research Department)

Abstract

This paper uses the Free Disposal Hull framework in order to assess the relative efficiency of Belgian general government in the field of health care, education and public order and safety. In order to do so, this paper aggregates a large number of outcome indicators. Several drawbacks indicate that results must be interpreted cautiously. These drawbacks aside, the analysis reveals that Belgium is relatively efficient in the field of health care. As a whole, the Belgian education system is more expensive but also produces better results than the European average. However, an analysis based on a limited set of indicators reveals that the French-speaking education sector is very inefficient while the Flemish Community’s efficiency is markedly better. As far as public order and safety are concerned, major improvements could and should be made, either to improve service or cut costs

Suggested Citation

  • Bruno Eugène, 2008. "The efficiency frontier as a method for gauging the performance of public expenditure : a Belgian case study," Working Paper Research 138, National Bank of Belgium.
  • Handle: RePEc:nbb:reswpp:200809-12
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    File URL: https://www.nbb.be/doc/oc/repec/reswpp/wp138en.pdf
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    References listed on IDEAS

    as
    1. Douglas Sutherland & Robert W. R. Price & Isabelle Joumard & Chantal Nicq, 2007. "Performance Indicators for Public Spending Efficiency in Primary and Secondary Education," OECD Economics Department Working Papers 546, OECD Publishing.
    2. António Afonso & Miguel St. Aubyn, 2005. "Non-parametric approaches to education and health efficiency in OECD countries," Journal of Applied Economics, Universidad del CEMA, vol. 8, pages 227-246, November.
    3. Afonso, Antonio & St. Aubyn, Miguel, 2006. "Cross-country efficiency of secondary education provision: A semi-parametric analysis with non-discretionary inputs," Economic Modelling, Elsevier, vol. 23(3), pages 476-491, May.
    4. António Afonso & Miguel St. Aubyn, 2006. "Relative Efficiency of Health Provision: a DEA Approach with Non-discretionary Inputs," Working Papers Department of Economics 2006/33, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    5. Frédéric Gonand & Isabelle Joumard & Robert W. R. Price, 2007. "Public Spending Efficiency: Institutional Indicators in Primary and Secondary Education," OECD Economics Department Working Papers 543, OECD Publishing.
    6. repec:dau:papers:123456789/11017 is not listed on IDEAS
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    More about this item

    Keywords

    Public spending efficiency; FDH;

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other

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