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

52 Pages Posted: 2 Feb 2006

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: January 2006

Abstract

In this paper we analyse public sector efficiency in the new member states of the European Union compared to that in emerging markets. After a conceptual discussion of expenditure efficiency measurement issues, 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 (January 2006). ECB Working Paper No. 581. Available at SSRN: https://ssrn.com/abstract=876945

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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