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Assessing the Efficiency of Welfare Spending in Slovenia with Data Envelopment Analysis

Author

Listed:
  • Matevz Hribernik

    (Institute of Macroeconomic Analysis and Development)

  • Rafal Kierzenkowski

    (OECD)

Abstract

This paper derives estimates of the efficiency of welfare spending in Slovenia and the other OECD countries from data envelopment analysis based on model specifications used in earlier OECD studies. Results suggest that Slovenia ranks about 25th among OECD countries for output efficiency: for a given level of spending outcomes fall short by around 3.5% in health care, by 10% in secondary education and by around one third in public administration. Results also suggests that Slovenia ranks 18th to 27th in the OECD for input efficiency as the same outcomes could be reached by scaling back costs by around half. Alternatively, spending increases could be contained and outcomes improved by increased cost efficiency. Statistical uncertainty surrounding input efficiency estimates is high for countries with the smallest scope for potential savings. Confidence intervals around output efficiency scores are also wide for some emerging market economies. Évaluation de l'efficacité des dépenses sociales en Slovénie avec la méthode d'enveloppement des données Cet article déduit les estimations de l'efficacité des dépenses sociales en Slovénie et dans les autres pays de l'OCDE à partir de l'analyse d'enveloppement des données basée sur les spécifications de modèles utilisés dans les études antérieures de l'OCDE. Les résultats suggèrent que la Slovénie se classe 25ème parmi les pays de l'OCDE pour l’efficacité productive: pour un niveau donné de dépenses les résultats sont en deçà d'environ 3,5% dans les soins de santé, de 10% dans l'enseignement secondaire et d'environ un tiers dans l'administration publique. Les résultats suggèrent également que la Slovénie se classe entre le 18ème et 27ème rang au sein de l'OCDE pour l'efficacité des intrants puisque les mêmes résultats peuvent être obtenus en réduisant les coûts de moitié environ. Alternativement, les hausses de dépenses pourraient être contenues et les résultats améliorés grâce à une meilleure efficacité-coût. L'incertitude statistique entourant les estimations de l'efficacité des intrants est élevée pour les pays ayant la plus faible marge de manoeuvre en termes d'économies potentielles. Les intervalles de confiance autour des scores d'efficacité productive sont également larges pour certains pays émergents.

Suggested Citation

  • Matevz Hribernik & Rafal Kierzenkowski, 2013. "Assessing the Efficiency of Welfare Spending in Slovenia with Data Envelopment Analysis," OECD Economics Department Working Papers 1058, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1058-en
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    File URL: http://dx.doi.org/10.1787/5k44v5373q0q-en
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    Cited by:

    1. 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

    administration publique; data envelopment analysis; dépenses sociales; efficacité; efficiency; enseignement secondaire; health; méthode d’enveloppement des données; OCDE; OECD; PISA; PISA; public administration; santé; secondary education; Slovenia; Slovénie; welfare spending;

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I28 - Health, Education, and Welfare - - Education - - - Government Policy
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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