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Public Spending Efficiency in the OECD: Benchmarking Health Care, Education, and General Administration

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Date
2020
Alternative titles
Dépense Publique dans l'OCDE : Évaluation des secteurs de la Santé, l'Éducation et l'Administration Générale
Dewey
Economie publique
Sujet
Administration; DEA; education; efficiency; health care; nonparametric; public spending
JEL code
H.H1.H11; H.H5.H51; H.H5.H52
Journal issue
Review of Economic Perspectives
Volume
20
Number
3
Publication date
2020
Article pages
253-280
Publisher
Sciendo
DOI
http://dx.doi.org/10.2478/revecp-2020-0013
URI
https://basepub.dauphine.fr/handle/123456789/21310
Collections
  • LEDa : Publications
Metadata
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Author
Dutu, Richard
163511 Laboratoire d'Economie de Dauphine [LEDa]
Sicari, Patrizio
70377 OECD - Economics Department
Type
Article accepté pour publication ou publié
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.

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