Public Spending Efficiency in the OECD: Benchmarking Health Care, Education, and General Administration
Dutu, Richard; Sicari, Patrizio (2020), Public Spending Efficiency in the OECD: Benchmarking Health Care, Education, and General Administration, Review of Economic Perspectives, 20, 3, p. 253-280. 10.2478/revecp-2020-0013
TypeArticle accepté pour publication ou publié
Journal nameReview of Economic Perspectives
MetadataShow full item record
Laboratoire d'Economie de Dauphine [LEDa]
OECD - Economics Department
Abstract (EN)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 / KeywordsAdministration; DEA; education; efficiency; health care; nonparametric; public spending
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