Efficiency of Public Spending In Developing Countries: An Efficiency Frontier Approach Vol. 1, 2 & 3
Government spending in developing countries typically account for between 15 and 30 percent of GDP. Hence, small changes in the efficiency of public spending could have a major impact on GDP and on the attainment of the government ' s objectives. The first challenge that stakeholders face is me...
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| Format: | Elektronisch E-Book |
| Sprache: | English |
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Washington, D.C
The World Bank
2005
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| Zusammenfassung: | Government spending in developing countries typically account for between 15 and 30 percent of GDP. Hence, small changes in the efficiency of public spending could have a major impact on GDP and on the attainment of the government ' s objectives. The first challenge that stakeholders face is measuring efficiency. This paper attempts such quantification and has two major parts. The first part estimates efficiency as the distance between observed input-output combinations and an efficiency frontier (defined as the maximum attainable output for a given level of inputs). This frontier is estimated for several health and education output indicators by means of the Free Disposable Hull (FDH) and Data Envelopment Analysis (DEA) techniques. Both input-inefficiency (excess input consumption to achieve a level of output) and output-inefficiency (output shortfall for a given level of inputs) are scored in a sample of 140 countries using data from 1996 to 2002. The second part of the paper seeks to verify empirical regularities of the cross-country variation in efficiency. Results show that countries with higher expenditure levels register lower efficiency scores, as well as countries where the wage bill is a larger share of the government ' s budget. Similarly, countries with higher ratios of public to private financing of the service provision score lower efficiency, as do countries plagued by the HIV/AIDS epidemic and those with higher income inequality. Countries with higher aid-dependency ratios also tend to score lower in efficiency, probably due to the volatility of this type of funding that impedes medium term planning and budgeting. Though no causality may be inferred from this exercise, it points at different factors to understand why some countries might need more resources than others to achieve similar educational and health outcomes |
| Beschreibung: | 1 Online-Ressource (69 Seiten)) |
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| 520 | 3 | |a Government spending in developing countries typically account for between 15 and 30 percent of GDP. Hence, small changes in the efficiency of public spending could have a major impact on GDP and on the attainment of the government ' s objectives. The first challenge that stakeholders face is measuring efficiency. This paper attempts such quantification and has two major parts. The first part estimates efficiency as the distance between observed input-output combinations and an efficiency frontier (defined as the maximum attainable output for a given level of inputs). This frontier is estimated for several health and education output indicators by means of the Free Disposable Hull (FDH) and Data Envelopment Analysis (DEA) techniques. Both input-inefficiency (excess input consumption to achieve a level of output) and output-inefficiency (output shortfall for a given level of inputs) are scored in a sample of 140 countries using data from 1996 to 2002. The second part of the paper seeks to verify empirical regularities of the cross-country variation in efficiency. Results show that countries with higher expenditure levels register lower efficiency scores, as well as countries where the wage bill is a larger share of the government ' s budget. Similarly, countries with higher ratios of public to private financing of the service provision score lower efficiency, as do countries plagued by the HIV/AIDS epidemic and those with higher income inequality. Countries with higher aid-dependency ratios also tend to score lower in efficiency, probably due to the volatility of this type of funding that impedes medium term planning and budgeting. Though no causality may be inferred from this exercise, it points at different factors to understand why some countries might need more resources than others to achieve similar educational and health outcomes | |
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| spelling | Herrera, Santiago Verfasser aut Efficiency of Public Spending In Developing Countries An Efficiency Frontier Approach Vol. 1, 2 & 3 Herrera, Santiago Washington, D.C The World Bank 2005 1 Online-Ressource (69 Seiten)) txt rdacontent c rdamedia cr rdacarrier Government spending in developing countries typically account for between 15 and 30 percent of GDP. Hence, small changes in the efficiency of public spending could have a major impact on GDP and on the attainment of the government ' s objectives. The first challenge that stakeholders face is measuring efficiency. This paper attempts such quantification and has two major parts. The first part estimates efficiency as the distance between observed input-output combinations and an efficiency frontier (defined as the maximum attainable output for a given level of inputs). This frontier is estimated for several health and education output indicators by means of the Free Disposable Hull (FDH) and Data Envelopment Analysis (DEA) techniques. Both input-inefficiency (excess input consumption to achieve a level of output) and output-inefficiency (output shortfall for a given level of inputs) are scored in a sample of 140 countries using data from 1996 to 2002. The second part of the paper seeks to verify empirical regularities of the cross-country variation in efficiency. Results show that countries with higher expenditure levels register lower efficiency scores, as well as countries where the wage bill is a larger share of the government ' s budget. Similarly, countries with higher ratios of public to private financing of the service provision score lower efficiency, as do countries plagued by the HIV/AIDS epidemic and those with higher income inequality. Countries with higher aid-dependency ratios also tend to score lower in efficiency, probably due to the volatility of this type of funding that impedes medium term planning and budgeting. Though no causality may be inferred from this exercise, it points at different factors to understand why some countries might need more resources than others to achieve similar educational and health outcomes Online-Ausg Children Decision Making Diphtheria Environment Environmental Economics and Policies Health Health Care Health Care Professionals Health Indicators Health Monitoring and Evaluation Health Outcomes Health Services Health, Nutrition and Population Hospitals Immunization Implementation Pang, Gaobo Sonstige oth Herrera, Santiago Sonstige oth Herrera, Santiago Efficiency of Public Spending In Developing Countries http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-3645 Verlag URL des Erstveröffentlichers Volltext |
| spellingShingle | Herrera, Santiago Efficiency of Public Spending In Developing Countries An Efficiency Frontier Approach Vol. 1, 2 & 3 Children Decision Making Diphtheria Environment Environmental Economics and Policies Health Health Care Health Care Professionals Health Indicators Health Monitoring and Evaluation Health Outcomes Health Services Health, Nutrition and Population Hospitals Immunization Implementation |
| title | Efficiency of Public Spending In Developing Countries An Efficiency Frontier Approach Vol. 1, 2 & 3 |
| title_auth | Efficiency of Public Spending In Developing Countries An Efficiency Frontier Approach Vol. 1, 2 & 3 |
| title_exact_search | Efficiency of Public Spending In Developing Countries An Efficiency Frontier Approach Vol. 1, 2 & 3 |
| title_exact_search_txtP | Efficiency of Public Spending In Developing Countries An Efficiency Frontier Approach Vol. 1, 2 & 3 |
| title_full | Efficiency of Public Spending In Developing Countries An Efficiency Frontier Approach Vol. 1, 2 & 3 Herrera, Santiago |
| title_fullStr | Efficiency of Public Spending In Developing Countries An Efficiency Frontier Approach Vol. 1, 2 & 3 Herrera, Santiago |
| title_full_unstemmed | Efficiency of Public Spending In Developing Countries An Efficiency Frontier Approach Vol. 1, 2 & 3 Herrera, Santiago |
| title_short | Efficiency of Public Spending In Developing Countries |
| title_sort | efficiency of public spending in developing countries an efficiency frontier approach vol 1 2 3 |
| title_sub | An Efficiency Frontier Approach Vol. 1, 2 & 3 |
| topic | Children Decision Making Diphtheria Environment Environmental Economics and Policies Health Health Care Health Care Professionals Health Indicators Health Monitoring and Evaluation Health Outcomes Health Services Health, Nutrition and Population Hospitals Immunization Implementation |
| topic_facet | Children Decision Making Diphtheria Environment Environmental Economics and Policies Health Health Care Health Care Professionals Health Indicators Health Monitoring and Evaluation Health Outcomes Health Services Health, Nutrition and Population Hospitals Immunization Implementation |
| url | http://elibrary.worldbank.org/content/workingpaper/10.1596/1813-9450-3645 |
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