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In measuring aggregate"social efficiency"

  • Ravallion, Martin

Cross-country comparisons of social indicators controlling for income and/or social spending have been widely used to measure and explain"social efficiency"analogously to"technical efficiency"in production. The author argues that these methods are clouded in ambiguities about what exactly is being measured. Standard methods of measuring technical efficiency require assumptions that seem unlikely to hold for social indicators. In the context of a simple parametric model of life expectancy, conditions are identified under which there will be a systematic pattern of bias in estimates of efficient health spending.

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Paper provided by The World Bank in its series Policy Research Working Paper Series with number 3166.

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Date of creation: 30 Nov 2003
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Handle: RePEc:wbk:wbrwps:3166
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  1. Sen, Amartya, 1981. "Public Action and the Quality of Life in Developing Countries," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 43(4), pages 287-319, November.
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  4. Sudhir Anand & Martin Ravallion, 1993. "Human Development in Poor Countries: On the Role of Private Incomes and Public Services," Journal of Economic Perspectives, American Economic Association, vol. 7(1), pages 133-150, Winter.
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  7. Ruwan Jayasuriya & Quentin Wodon, 2003. "Efficiency in Reaching the Millennium Development Goals," World Bank Publications, The World Bank, number 13884, September.
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  9. Konstantinos Giannakas & Kien Tran & Vangelis Tzouvelekas, 2003. "Predicting technical effciency in stochastic production frontier models in the presence of misspecification: a Monte-Carlo analysis," Applied Economics, Taylor & Francis Journals, vol. 35(2), pages 153-161.
  10. Skinner, Jonathan, 1994. "What do stochastic frontier cost functions tell us about inefficiency?," Journal of Health Economics, Elsevier, vol. 13(3), pages 323-328, October.
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  14. Jalan, Jyotsna & Ravallion, Martin, 2001. "Does piped water reduce diarrhea for children in rural India ?," Policy Research Working Paper Series 2664, The World Bank.
  15. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-74, October.
  16. 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.
  17. Bidani, Benu & Ravallion, Martin, 1995. "Decomposing social indicators using distributional data," Policy Research Working Paper Series 1487, The World Bank.
  18. Ravallion, Martin, 2001. "On Assessing the Efficiency of the Welfare State: A Comment," Kyklos, Wiley Blackwell, vol. 54(1), pages 115-23.
  19. Park, B.U. & Simar, L. & Weiner, Ch., 2000. "The Fdh Estimator For Productivity Efficiency Scores," Econometric Theory, Cambridge University Press, vol. 16(06), pages 855-877, December.
  20. Rulon D. Pope & Richard E. Just, 2003. "Distinguishing Errors in Measurement from Errors in Optimization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 85(2), pages 348-358.
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  22. Cazals, Catherine & Florens, Jean-Pierre & Simar, Leopold, 2002. "Nonparametric frontier estimation: a robust approach," Journal of Econometrics, Elsevier, vol. 106(1), pages 1-25, January.
  23. Aturupane, Harsha & Glewwe, Paul & Isenman, Paul, 1994. "Poverty, Human Development, and Growth: An Emerging Consensus?," American Economic Review, American Economic Association, vol. 84(2), pages 244-49, May.
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