Which country uses public social expenditure efficiently among OECD countries?

Taeyoung Kim and Hongkyun Kim

Applied Economics Letters, 2017, vol. 24, issue 10, 677-680

Abstract: In this study, we estimate the efficiency of public social expenditure and examine what exogenous factors affect the efficiency for OECD countries. In doing so, we use the Stochastic Frontier Model. Our findings suggest the following. First, public social expenditure related to unemployment and family as well as tax burden ratio significantly reduce income inequality. Second, corruption affects the efficiency of public social expenditure. This implies that even though two countries incur the same public social expenditure, a country with a low corruption index has higher efficiency of public social expenditure than that with a high corruption index.

Date: 2017
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DOI: 10.1080/13504851.2016.1221031

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