Non-parametric Approaches to Education and Health Expenditure Efficiency in OECD Countries

Antonio Afonso and Miguel Aubyn ()

No 2004/01, Working Papers Department of Economics from ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa

Abstract: We address the efficiency of expenditure in education and health sectors for a sample of OECD countries by applying two alternative non-parametric methodologies: FDH and DEA. Those are two areas where public expenditure is of great importance so that findings have strong implications in what concerns public sector efficiency. When estimating the efficiency frontier we use both measures of expenditure and quantity inputs. We believe this approach to be advantageous since a country may well be efficient from a technical point of view but appear as inefficient if the inputs it uses are expensive. Efficient outcomes across sectors and analytical methods seem to cluster around a small number of core countries, even if for different reasons: Finland, Japan, Korea and Sweden.

Keywords: expenditure and education; expenditure and health; expenditure efficiency; production possibility frontier; FDH; DEA (search for similar items in EconPapers)
JEL-codes: C14 H51 H52 I18 I21 I28 (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-edu, nep-eec, nep-hea and nep-pbe
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Citations: View citations in EconPapers (50)

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