Public sector efficiency: Leveling the playing field between OECD countries
In this paper we seek a robust methodology to measure the relative public spending efficiency of 19 OECD countries over the period 1980-2000. Based on the functional classification of government expenditure, we decompose total public spending into its separate accounts and we employ a semi-parametric method to obtain relative efficiency scores (for the separate accounts as well as for aggregate public spending). The econometric method isolates the impact of government inefficiency from the inefficiency arising from the socioeconomic environment or luck, thus leveling the playing field between the examined countries. The results suggest that the quality of governance is more important than the socioeconomic environment or luck. Finally, we propose a technique to measure the allocative efficiency of public spending, in an effort to proxy the optimal allocation of public funds when the governments set specific targets.
|Date of creation:||18 Dec 2008|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Moene, Karl O., 1986. "Types of bureaucratic interaction," Journal of Public Economics, Elsevier, vol. 29(3), pages 333-345, April.
- Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1989.
"Production Frontiers With Cross-Sectinal And Time-Series Variation In Efficiency Levels,"
89-18, C.V. Starr Center for Applied Economics, New York University.
- Cornwell, Christopher & Schmidt, Peter & Sickles, Robin C., 1990. "Production frontiers with cross-sectional and time-series variation in efficiency levels," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 185-200.
- Balaguer-Coll, Maria Teresa & Prior, Diego & Tortosa-Ausina, Emili, 2007.
"On the determinants of local government performance: A two-stage nonparametric approach,"
European Economic Review,
Elsevier, vol. 51(2), pages 425-451, February.
- Emili Tortosa Ausina & Diego Prior & María Teresa Balaguer-Coll, 2004. "On The Determinants Of Local Government Performance: A Two-Stage Nonparametric Approach," Working Papers. Serie EC 2004-04, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
- Konstantinos Angelopoulos & Apostolis Philippopoulos, 2005. "The Role of Government in Anti-Social Redistributive Activities," CESifo Working Paper Series 1427, CESifo Group Munich.
- Hayes, Kathy J & Razzolini, Laura & Ross, Leola B, 1998.
"Bureaucratic Choice and Nonoptimal Provision of Public Goods: Theory and Evidence,"
Springer, vol. 94(1-2), pages 1-20, January.
- Kathy Hayes & Laura Razzolini & Leola Ross, 1998. "Bureaucratic choice and nonoptimal provision of public goods: Theory and evidence," Public Choice, Springer, vol. 94(1), pages 1-20, January.
- 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.
- Dennis D. Kimko & Eric A. Hanushek, 2000.
"Schooling, Labor-Force Quality, and the Growth of Nations,"
American Economic Review,
American Economic Association, vol. 90(5), pages 1184-1208, December.
- Jerik Hanushek & Dennis Kimko, 2006. "Schooling, Labor-force Quality, and the Growth of Nations," Educational Studies, Higher School of Economics, issue 1, pages 154-193.
- Adam, Antonis & Delis, Manthos D & Kammas, Pantelis, 2012.
"Fiscal decentralization and public sector efficiency: Evidence from OECD countries,"
36889, University Library of Munich, Germany.
- Antonis Adam & Manthos Delis & Pantelis Kammas, 2014. "Fiscal decentralization and public sector efficiency: evidence from OECD countries," Economics of Governance, Springer, vol. 15(1), pages 17-49, February.
- Antonis Adam & Manthos D. Delis & Pantelis Kammas, 2008. "Fiscal Decentralization and Public Sector Efficiency: Evidence from OECD Countries," CESifo Working Paper Series 2364, CESifo Group Munich.
- Konstantinos Angelopoulos & Apostolis Philippopoulos & Efthymios Tsionas, 2007.
"Does public sector efficiency matter? Revisiting the relation between fiscal size and economic growth in a world sample,"
2007_30, Business School - Economics, University of Glasgow.
- Konstantinos Angelopoulos & Apostolis Philippopoulos & Efthymios Tsionas, 2008. "Does public sector efficiency matter? Revisiting the relation between fiscal size and economic growth in a world sample," Public Choice, Springer, vol. 137(1), pages 245-278, October.
- Jose Tavares, 2000.
"Does Right or Left Matter? Cabinets, Credibility and Fiscal Adjustments,"
Econometric Society World Congress 2000 Contributed Papers
1548, Econometric Society.
- Tavares, Jose, 2004. "Does right or left matter? Cabinets, credibility and fiscal adjustments," Journal of Public Economics, Elsevier, vol. 88(12), pages 2447-2468, December.
- Glenn Rayp & Nicolas Van De Sijpe, 2007.
"Measuring and explaining government efficiency in developing countries,"
Journal of Development Studies,
Taylor & Francis Journals, vol. 43(2), pages 360-381.
- van de Sijpe, Nicolas & Rayp, Glenn, 2005. "Measuring and Explaining Government Inefficiency in Developing Countries," Proceedings of the German Development Economics Conference, Kiel 2005 32, Verein für Socialpolitik, Research Committee Development Economics.
- N. Van De Sijpe & G. Rayp, 2004. "Measuring and Explaining Government Inefficiency in Developing Countries," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 04/266, Ghent University, Faculty of Economics and Business Administration.
- Alesina, A. & Drazen, A., 1991.
"Why Are Stabilizations Delayed?,"
6-91, Tel Aviv - the Sackler Institute of Economic Studies.
- Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010.
"Public sector efficiency: evidence for new EU member states and emerging markets,"
Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
- Afonso, António & Schuknecht, Ludger & Tanzi, Vito, 2006. "Public sector efficiency: evidence for new EU member states and emerging markets," Working Paper Series 0581, European Central Bank.
- 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.
- Kumbhakar, Subal C. & Tsionas, Efthymios G., 2005. "The Joint Measurement of Technical and Allocative Inefficiencies: An Application of Bayesian Inference in Nonlinear Random-Effects Models," Journal of the American Statistical Association, American Statistical Association, vol. 100, pages 736-747, September.
- Afonso, António & Schuknecht, Ludger & Tanzi, Vito, 2003.
"Public sector efficiency: an international comparison,"
Working Paper Series
0242, European Central Bank.
- António Afonso & Ludger Schuknecht & Vito Tanzi, 2005. "Public sector efficiency: An international comparison," Public Choice, Springer, vol. 123(3), pages 321-347, June.
- Palda, Filip, 1997.
"Fiscal Churning and Political Efficiency,"
Wiley Blackwell, vol. 50(2), pages 189-206.
- 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.
- Duncombe, William & Miner, Jerry & Ruggiero, John, 1997. "Empirical Evaluation of Bureaucratic Models of Inefficiency," Public Choice, Springer, vol. 93(1-2), pages 1-18, October.
- Roubini, Nouriel & Sachs, Jeffrey D., 1989. "Political and economic determinants of budget deficits in the industrial democracies," European Economic Review, Elsevier, vol. 33(5), pages 903-933, May.
- Tanzi,Vito & Schuknecht,Ludger, 2000.
"Public Spending in the 20th Century,"
Cambridge University Press, number 9780521662918, December.
- H. Fried & C. Lovell & S. Schmidt & S. Yaisawarng, 2002. "Accounting for Environmental Effects and Statistical Noise in Data Envelopment Analysis," Journal of Productivity Analysis, Springer, vol. 17(1), pages 157-174, January.
- Jochen Mierau & Richard Jong-A-Pin & Jakob de Haan, 2007. "Do political variables affect fiscal policy adjustment decisions? New empirical evidence," Public Choice, Springer, vol. 133(3), pages 297-319, December.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:16493. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.