Public Sector Efficiency: Evidence for New EU Member States and Emerging Markets

Posted: 13 Jun 2010 Last revised: 12 Aug 2010

See all articles by Antonio Afonso

Antonio Afonso

University of Lisbon - ISEG (School of Economics and Management); UECE (Research Unit on Complexity and Economics)

Ludger Schuknecht

European Central Bank (ECB)

Vito Tanzi

Inter-American Development Bank (IADB)

Multiple version iconThere are 2 versions of this paper

Date Written: July 1, 2010

Abstract

In this paper we analyse public sector efficiency in the new member states of the EU compared to that in emerging markets. After a conceptual discussion of expenditure efficiency measurement, we compute efficiency scores and rankings by applying a range of measurement techniques. The study finds that expenditure efficiency across new EU member states is rather diverse especially as compared to the group of top performing emerging markets in Asia. Econometric analysis shows that higher income, civil service competence and education levels as well as the security of property rights seem to facilitate the prevention of inefficiencies in the public sector.

Keywords: government expenditure, efficiency, DEA, new EU member states, emerging markets

JEL Classification: C14, H40, H50

Suggested Citation

Afonso, Antonio and Schuknecht, Ludger and Tanzi, Vito, Public Sector Efficiency: Evidence for New EU Member States and Emerging Markets (July 1, 2010). Applied Economics, Vol. 42, No. 17, pp. 2147-2164, 2010. Available at SSRN: https://ssrn.com/abstract=1022601

Antonio Afonso (Contact Author)

University of Lisbon - ISEG (School of Economics and Management) ( email )

R. Miguel Lupi, 20
Lisbon, 1248-078
Portugal
+351 21 392 5985 (Phone)
+351 21 396 6407 (Fax)

HOME PAGE: http://https://www.iseg.ulisboa.pt/aquila/homepage/aafonso

UECE (Research Unit on Complexity and Economics)

Rua Miguel Lupi 20
Lisbon, 1249-078
Portugal
+351-213 925 912 (Phone)
+351-213 971 196 (Fax)

HOME PAGE: http://https://uece.rc.iseg.ulisboa.pt/

Ludger Schuknecht

European Central Bank (ECB) ( email )

Sonnemannstrasse 22
Frankfurt am Main, 60314
Germany
+49 69 1344 6494 (Phone)
+49 69 1344 7809 (Fax)

Vito Tanzi

Inter-American Development Bank (IADB) ( email )

1300 New York Avenue NW
Washington, DC 20577
United States

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