Public Sector Efficiency: Evidence for New EU Member States and Emerging Markets

Antonio Afonso, Ludger Schuknecht () and Vito Tanzi

No 2006/01, Working Papers from Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.

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.

Keywords: government expenditure; efficiency; DEA; new EU member states; emerging markets. (search for similar items in EconPapers)
JEL-codes: C14 H40 H50 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-eff and nep-pbe
Date: 2006
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Working Paper: Public sector efficiency: evidence for new EU member states and emerging markets (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:ise:isegwp:wp12006

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