The Efficiency of Education Expenditure in Portugal

IMF Working Papers, December 1, 1999

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The Efficiency of Education Expenditure in Portugal

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Bibliographic details

• Authors: Benedict J. Clements
• Published: December 1, 1999
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451859010.001

Overview

• This paper assesses the efficiency of education expenditure in Portugal and delineates a possible agenda for reform.
• Portugal’s low educational performance has coincided with the highest level of primary and secondary education expenditure to GDP in the Organization for Economic Cooperation and Development (OECD), suggesting considerable inefficiency.
• Empirical results are obtained from the application of a nonparametric technique for production frontier estimation (Free Disposable Hull analysis).

Empirical findings

• The application of Free Disposable Hull analysis supports the view that Portugal’s primary and secondary education expenditure exhibits considerable inefficiency relative to OECD peers.
• Key empirical observation: Portugal combines low educational performance with the highest level of primary and secondary education expenditure to GDP in the OECD.

Policy recommendations and reform agenda

• Adoption of a goal-oriented management and incentive system.
• Establishment of minimum student/teacher ratios.
• Easing of employment and work rules governing public school teachers.

Content in this bundle

• The Efficiency of Education Expenditure in Portugal - WP/99/179
  • The Efficiency of Education Expenditure in Portugal - WP/99/179 (Markdown version)
  • The Efficiency of Education Expenditure in Portugal - WP/99/179 (PDF)