On the persistence of public sector efficiency and the role of historical institutional quality

Konstantinos Angelopoulos and Pantelis Kammas ()

Chapter 6 in Handbook on Public Sector Efficiency, 2023, pp 129-148 from Edward Elgar Publishing

Abstract: In this chapter, we examine the persistence of comparative public sector efficiency, across OECD countries, since 1900. We estimate public sector efficiency using data on public expenditure and proxies of performance in education and health that allow for consistent measurement across countries since 1900. We find that cross-country variation in public sector efficiency in 1900 is related to future variation in public sector efficiency, even up to the end of the 20th century. We then consider one plausible explanation for the persistence in comparative public sector efficiency, long term effects of institutional quality. We find that institutional quality in 1900 has a positive relationship with the efficiency and, especially, the performance of the public sector, after the middle and until the end of the 20th century.

Keywords: Economics and Finance; Politics and Public Policy (search for similar items in EconPapers)
Date: 2023
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