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

This paper gauges public spending efficiency on human and physical capital formation using non-parametric methods. Input-inefficiency and output-inefficiency are scored across 195 countries using 2010-2020 data. The consistent methodology allows within-country comparison of efficiency across sectors...

Full description

Saved in:
Bibliographic Details
Main Authors: Santiago Herrera, Hironobu Isaka, Abdoulaye Ouedraogo
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Journal of Applied Economics
Subjects:
Online Access:https://www.tandfonline.com/doi/10.1080/15140326.2025.2480985
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1850065784155406336
author Santiago Herrera
Hironobu Isaka
Abdoulaye Ouedraogo
author_facet Santiago Herrera
Hironobu Isaka
Abdoulaye Ouedraogo
author_sort Santiago Herrera
collection DOAJ
description This paper gauges public spending efficiency on human and physical capital formation using non-parametric methods. Input-inefficiency and output-inefficiency are scored across 195 countries using 2010-2020 data. The consistent methodology allows within-country comparison of efficiency across sectors. Developing countries show lower efficiency in infrastructure spending, moderate efficiency in education, and higher efficiency in health spending. Comparisons with previous studies indicate significant efficiency gains over time in human capital spending. The efficiency gap between human and physical capital spending suggests better project selection and management in infrastructure are central to the development agenda. The paper verifies empirical regularities in cross-country efficiency variations, finding negative associations between efficiency and spending levels and positive associations with governance quality indicators. This analysis helps explain why some countries might need more resources than others to achieve similar development outcomes.
format Article
id doaj-art-882e994cae984cda82b808d453f49fdb
institution DOAJ
issn 1514-0326
1667-6726
language English
publishDate 2025-12-01
publisher Taylor & Francis Group
record_format Article
series Journal of Applied Economics
spelling doaj-art-882e994cae984cda82b808d453f49fdb2025-08-20T02:48:54ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262025-12-0128110.1080/15140326.2025.2480985Efficiency of public spending in education, health, and infrastructure: an international benchmarking exerciseSantiago Herrera0Hironobu Isaka1Abdoulaye Ouedraogo2Macro- Trade-Investment, World Bank Group, Washington, DC, USAMacro- Trade-Investment, World Bank Group, Washington, DC, USAMacro- Trade-Investment, World Bank Group, Washington, DC, USAThis paper gauges public spending efficiency on human and physical capital formation using non-parametric methods. Input-inefficiency and output-inefficiency are scored across 195 countries using 2010-2020 data. The consistent methodology allows within-country comparison of efficiency across sectors. Developing countries show lower efficiency in infrastructure spending, moderate efficiency in education, and higher efficiency in health spending. Comparisons with previous studies indicate significant efficiency gains over time in human capital spending. The efficiency gap between human and physical capital spending suggests better project selection and management in infrastructure are central to the development agenda. The paper verifies empirical regularities in cross-country efficiency variations, finding negative associations between efficiency and spending levels and positive associations with governance quality indicators. This analysis helps explain why some countries might need more resources than others to achieve similar development outcomes.https://www.tandfonline.com/doi/10.1080/15140326.2025.2480985Efficiency frontiersnonparametric methodsefficiency of public spending
spellingShingle Santiago Herrera
Hironobu Isaka
Abdoulaye Ouedraogo
Efficiency of public spending in education, health, and infrastructure: an international benchmarking exercise
Journal of Applied Economics
Efficiency frontiers
nonparametric methods
efficiency of public spending
title Efficiency of public spending in education, health, and infrastructure: an international benchmarking exercise
title_full Efficiency of public spending in education, health, and infrastructure: an international benchmarking exercise
title_fullStr Efficiency of public spending in education, health, and infrastructure: an international benchmarking exercise
title_full_unstemmed Efficiency of public spending in education, health, and infrastructure: an international benchmarking exercise
title_short Efficiency of public spending in education, health, and infrastructure: an international benchmarking exercise
title_sort efficiency of public spending in education health and infrastructure an international benchmarking exercise
topic Efficiency frontiers
nonparametric methods
efficiency of public spending
url https://www.tandfonline.com/doi/10.1080/15140326.2025.2480985
work_keys_str_mv AT santiagoherrera efficiencyofpublicspendingineducationhealthandinfrastructureaninternationalbenchmarkingexercise
AT hironobuisaka efficiencyofpublicspendingineducationhealthandinfrastructureaninternationalbenchmarkingexercise
AT abdoulayeouedraogo efficiencyofpublicspendingineducationhealthandinfrastructureaninternationalbenchmarkingexercise