Government Spending on Health Care and Education in Croatia: Efficiency and Reform Options
IMF Working Papers, May 1, 2008
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- Government Spending on Health Care and Education in Croatia: Efficiency and Reform Options
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Bibliographic details
- Authors: Victoria Gunnarsson, Etibar Jafarov
- Published: May 1, 2008
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451869958.001
Summary
- This paper assesses the relative efficiency of government spending on health care and education in Croatia by using the so-called Data Envelopment Analysis.
- The analysis finds evidence of significant inefficiencies in Croatia's spending on health care and education.
- These inefficiencies suggest that government spending on health and education could be reduced without undue sacrifices in the quality of these services.
- The paper identifies ways to do that.
Analysis method
- Data Envelopment Analysis is used to assess relative efficiency of government spending on health care and education.
Key findings: inefficiencies and drivers
- Significant inefficiencies exist in spending on health care and education in Croatia.
- Identified drivers of inefficiency:
- Inadequate cost recovery.
- Weaknesses in the financing mechanisms and institutional arrangements.
- Weak competition in the provision of these services.
- Weaknesses in targeting public subsidies on health care and education.
Policy implications and reform options
- Government spending on health and education could be reduced without undue sacrifices in service quality.
- The paper identifies ways to reduce spending while preserving quality (specific measures are detailed in the paper).
Content in this bundle
- Box 1. Performance Indicators