Relative efficiency of government expenditure on secondary education

Abstract

Abstract. Governments of OECD countries are under pressure to improve public sector performance and at the same time to reduce the government expenditure. In the process of improvement of public sector performance it is necessary ensure the efficiency in the provision of education, at the same time, the countries are required to provide their educational services by minimizing the amount of public money directed to them. This prompted us to implement the comparative study to assess the efficiency of government expenditure on secondary education in European countries in 2015. First we analyze the government expenditure based on the data published by International Monetary Fund (IMF). Second, we analyze the quality of education through the PISA indicators published by OECD. Then we apply the Data Envelopment Analysis (DEA) to assess the relative efficiency of government expenditure on secondary education using output-oriented model under the assumption of variable return to scale. Based on the results could it be said that average efficiency was 0.955 which suggests that the efficiency in evaluated countries was relatively high.

Technical efficiency of provincial public healthcare in South Africa

“…In this paper, we follow the DEA approach developed by Farrell in 1957 and enhanced in 1978 by Charnes, Cooper and Rhodes (also called the CCR model) to convert the fractional linear efficiency estimates into linear mathematical efficiency programmes under the CRS. We also use the VRS approach reported by Gavurova et al [22] to have been developed in 1984 by Banker, Charnes and Cooper to transform the CCR model to allow for consideration of scale efficiency analysis. This is called the Banker, Charnes and Cooper (BCC) model.…”

“…However, in most cases, DMUs have varying sizes and this becomes a factor when determining their efficiency. As a result, Gavurova et al [22] mention that in 1984, the CCR formulation was generalised to allow for the VRS. Lavado and Domingo [31] argued that, in practice, there is plethora of factors such as financial constraints that may result in the DMUs not operating at optimal scale.…”

“…ε , is the non-Archimedean constant. Gavurova et al [22] hint that if the slack variables of a DMU are not equal to zero and the technical efficiency score is lower than one, it is necessary to perform a non-radial shift that is expressed by the slack variables to achieve technical efficiency. In Eq.…”

Efficiency of Public Expenditure on Education: Comparing Croatia With Other NMS

“…Studies of efficiency of government spending on education in a cross-country perspective (e.g. [19]; [20]; [21]; [22]; [23]; [24]; [26]; [27]; [28]; [29]; [30]; [31]; [32]; [33]; [33]) mainly used DEA method to assess educational performance in a sample of European and/or OECD countries. Availability of internationally standardized data (PISA) allowed for analysis of quality of the secondary education.…”

“…Gavurova et.al [33] applied output-oriented DEA model in the cross-country perspective to assess the efficiency of public expenditure on secondary education in selected European countries in 2015 using PISA test scores in math, reading and science as outputs and public expenditure on the secondary education as % of GDP in 2014 as inputs. The results showed relatively high educational performance in selected countries.…”