Efficiency of Public Spending in Education, Health, and Infrastructure

dc.creatorOuedraogo, Abdoulaye
dc.creatorHerrera, Santiago
dc.date2018-09-14T20:28:41Z
dc.date2018-09-14T20:28:41Z
dc.date2018-09
dc.date.accessioned2026-07-01T00:40:49Z
dc.descriptionGovernments of developing countries typically spend between 20 and 30 percent of gross domestic product. Hence, small changes in the efficiency of public spending could have a major impact on aggregate productivity growth and gross domestic product levels. Therefore, measuring efficiency and comparing input-output combinations of different decision-making units becomes a central challenge. This paper gauges efficiency as the distance between observed input-output combinations and an efficiency frontier estimated by means of the Free Disposal Hull and Data Envelopment Analysis techniques. Input-inefficiency (excess input consumption to achieve a level of output) and output-inefficiency (output shortfall for a given level of inputs) are scored in a sample of 175 countries using data from 2006-16 on education, health, and infrastructure. The paper verifies empirical regularities of the cross-country variation in efficiency, showing a negative association between efficiency and spending levels and the ratio of public-to-private financing of the service provision. Other variables, such as inequality, urbanization, and aid dependency, show mixed results. The efficiency of capital spending is correlated with the quality of governance indicators, especially regulatory quality (positively) and perception of corruption (negatively). Although no causality may be inferred from this exercise, it points at different factors to understand why some countries might need more resources than others to achieve similar education, health, and infrastructure outcomes.
dc.formatapplication/pdf
dc.formattext/plain
dc.identifierhttp://documents.worldbank.org/curated/en/307361536864553619/Efficiency-of-Public-Spending-in-Education-Health-and-Infrastructure-An-International-Benchmarking-Exercise
dc.identifierhttps://hdl.handle.net/10986/30431
dc.identifier10.1596/1813-9450-8586
dc.identifier.urihttp://hdl.handle.net/123456789/409000
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relationPolicy Research Working Paper;No. 8586
dc.rightsCC BY 3.0 IGO
dc.rightshttp://creativecommons.org/licenses/by/3.0/igo
dc.rightsWorld Bank
dc.subjectPUBLIC EXPENDITURE
dc.subjectPUBLIC SPENDING
dc.subjectPUBLIC SECTOR MANAGEMENT
dc.subjectPUBLIC EDUCATION
dc.subjectEDUCATION SPENDING
dc.subjectPUBLIC HEALTH
dc.subjectHEALTH EXPENDITURE
dc.subjectINFRASTRUCTURE SPENDING
dc.subjectSERVICE DELIVERY
dc.subjectPRIVATE SECTOR
dc.subjectPRIVATE INVESTMENT
dc.titleEfficiency of Public Spending in Education, Health, and Infrastructure
dc.titleAn International Benchmarking Exercise
dc.typeWorking Paper
dc.typeDocument de travail
dc.typeDocumento de trabajo

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