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

Public Spending Efficiency in the OECD

Benchmarking Health Care, Education and General Administration

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 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 life-style factors, for example). We find wide dispersion in efficiency measures across OECD countries and provide possible quantified improvements for both output and input efficiency.

English

Keywords: DEA, education, Public spending efficiency, healthcare
JEL: H11: Public Economics / Structure and Scope of Government / Structure, Scope, and Performance of Government; H51: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Health; H52: Public Economics / National Government Expenditures and Related Policies / National Government Expenditures and Education
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