Efficiency Decomposition of Public Expenditure—Evidence from Indian States

Blessy Augustine () and S. Raja Sethu Durai
Additional contact information
Blessy Augustine: Madras School of Economics
S. Raja Sethu Durai: University of Hyderabad

A chapter in India's Public Finance and Policy Challenges in the 2020s, 2025, pp 105-120 from Springer

Abstract: Abstract Assessing the efficiency of public expenditure and identifying the origins of inefficiency is imperative for any government to design effective policy measures. This study aims to decompose the efficiency of health and education expenditure of major Indian states as a two-stage process in which the first stage is infrastructure development and the second is service delivery. Using a two-stage relational Data Envelopment Analysis of (Kao and Hwang, European Journal of Operational Research 185:418–429, 2008) for the year 2019–2020, the empirical findings from this study suggest a significant variation in efficiency across the states in these two stages. Further, it also identifies that the governance of a state matters only in the infrastructure stage and not in the service delivery stage. The results from this study will help the states understand the stage where they have deficiencies and design their policy for improvement.

Keywords: Public expenditure efficiency; Data envelopment analysis; Two-stage relational DEA; Governance (search for similar items in EconPapers)
JEL-codes: C61 H72 I1 I2 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:isbchp:978-981-96-2860-5_7

Ordering information: This item can be ordered from
http://www.springer.com/9789819628605

DOI: 10.1007/978-981-96-2860-5_7

Access Statistics for this chapter

More chapters in India Studies in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().