Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/227549 
Year of Publication: 
2020
Citation: 
[Journal:] Review of Economic Perspectives [ISSN:] 1804-1663 [Volume:] 20 [Issue:] 3 [Publisher:] De Gruyter [Place:] Warsaw [Year:] 2020 [Pages:] 253-280
Publisher: 
De Gruyter, Warsaw
Abstract: 
In many OECD countries, changes in demography and health conditions are putting pressure on public finance. To prevent further expansion of government spending as a percentage of GDP, public spending efficiency will need to be raised. This paper uses data envelopment analysis (DEA) to assess the efficiency of welfare spending (normalized by the working-age population) in a sample of OECD countries around 2012, focussing on health care, secondary education, and general public services. The DEA model has a two input-one output structure, with at least one of the variables representing a composite indicator controlling for country-specific factors (socio-economic environment and lifestyle factors, for example). We find wide dispersion in efficiency measures across OECD countries and provide possible quantified improvements for both output and input efficiency.
Subjects: 
Administration
DEA
education
efficiency
health care
nonparametric,public spending
JEL: 
H11
H51
H52
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Article

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