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Public sector efficiency: evidence for new EU member states and emerging markets

[journal article]

Schuknecht, Ludger; Afonso, António; Tanzi, Vito

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Abstract In this paper we analyse public sector efficiency in the new member states of the European Union compared to that in emerging markets. After a conceptual discussion of expenditure efficiency measurement issues, we compute efficiency scores and rankings by applying a range of measurement techniques. The study finds that expenditure efficiency across new EU member states is rather diverse especially as compared to the group of top performing emerging markets in Asia. Econometric analysis shows that higher income, civil service competence and education levels as well as the security of property rights seem to facilitate the prevention of inefficiencies in the public sector.
Classification Economic Policy; Public Finance
Free Keywords government expenditure; efficiency; DEA; new EU member states; emerging markets; C14; H40; H50
Document language English
Publication Year 2010
Page/Pages p. 2147-2164
Journal Applied Economics, 42 (2010) 17
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)