1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Assessing the Efficiency of Welfare Spending in Slovenia with Data Envelopment Analysis

This paper derives estimates of the efficiency of welfare spending in Slovenia and the other OECD countries from data envelopment analysis based on model specifications used in earlier OECD studies. Results suggest that Slovenia ranks about 25th among OECD countries for output efficiency: for a given level of spending outcomes fall short by around 3.5% in health care, by 10% in secondary education and by around one third in public administration. Results also suggests that Slovenia ranks 18th to 27th in the OECD for input efficiency as the same outcomes could be reached by scaling back costs by around half. Alternatively, spending increases could be contained and outcomes improved by increased cost efficiency. Statistical uncertainty surrounding input efficiency estimates is high for countries with the smallest scope for potential savings. Confidence intervals around output efficiency scores are also wide for some emerging market economies.

English

Keywords: public administration, OECD, welfare spending, data envelopment analysis, PISA, Slovenia, health, efficiency, secondary education
JEL: I28: Health, Education, and Welfare / Education and Research Institutions / Education: Government Policy; I38: Health, Education, and Welfare / Welfare, Well-Being, and Poverty / Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs; H83: Public Economics / Miscellaneous Issues / Public Administration; Public Sector Accounting and Audits; C14: Mathematical and Quantitative Methods / Econometric and Statistical Methods and Methodology: General / Semiparametric and Nonparametric Methods: General; I18: Health, Education, and Welfare / Health / Health: Government Policy; Regulation; Public Health
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