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Efficiency of public spending in education, health, and infrastructure: an international benchmarking exercise

Santiago Herrera et al.

Journal of Applied Economics2025https://doi.org/10.1080/15140326.2025.2480985article
AJG 1ABDC B
Weight
0.51

Abstract

Governments of developing countries
\n typically spend between 20 and 30 percent of gross domestic
\n product. Hence, small changes in the efficiency of public
\n spending could have a major impact on aggregate productivity
\n growth and gross domestic product levels. Therefore,
\n measuring efficiency and comparing input-output combinations
\n of different decision-making units becomes a central
\n challenge. This paper gauges efficiency as the distance
\n between observed input-output combinations and an efficiency
\n frontier estimated by means of the Free Disposal Hull and
\n Data Envelopment Analysis techniques. Input-inefficiency
\n (excess input consumption to achieve a level of output) and
\n output-inefficiency (output shortfall for a given level of
\n inputs) are scored in a sample of 175 countries using data
\n from 2006-16 on education, health, and infrastructure. The
\n paper verifies empirical regularities of the cross-country
\n variation in efficiency, showing a negative association
\n between efficiency and spending levels and the ratio of
\n public-to-private financing of the service provision. Other
\n variables, such as inequality, urbanization, and aid
\n dependency, show mixed results. The efficiency of capital
\n spending is correlated with the quality of governance
\n indicators, especially regulatory quality (positively) and
\n perception of corruption (negatively). Although no causality
\n may be inferred from this exercise, it points at different
\n factors to understand why some countries might need more
\n resources than others to achieve similar education, health,
\n and infrastructure outcomes.

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https://doi.org/https://doi.org/10.1080/15140326.2025.2480985

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@article{santiago2025,
  title        = {{Efficiency of public spending in education, health, and infrastructure: an international benchmarking exercise}},
  author       = {Santiago Herrera et al.},
  journal      = {Journal of Applied Economics},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1080/15140326.2025.2480985},
}

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Evidence weight

0.51

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.