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Enhancing the Cost Effectiveness of Public Spending: Experience in OECD Countries

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  • Isabelle Joumard
  • Per Mathis Kongsrud
  • Young-Sook Nam
  • Robert Price

Abstract

In most OECD countries, public spending rose steadily as a share of GDP over the past decades to the mid-1990s, but this trend has since abated. The spending pressures stemming from the continued expansion of social programmes have been partly compensated by transient or one-off factors. Pressures on public spending, however, appear likely to intensify, in particular as a consequence of ageing populations. Since most OECD economies have very little scope for raising taxation or debt to finance higher spending, reforms to curb the growth in public spending while raising its cost effectiveness are now required. Based on detailed country reviews for over two-thirds of OECD countries, this paper identifies three main areas for action: the budget process; management practices; and the use of market mechanisms in the delivery of public services ...

Suggested Citation

  • Isabelle Joumard & Per Mathis Kongsrud & Young-Sook Nam & Robert Price, 2004. "Enhancing the Cost Effectiveness of Public Spending: Experience in OECD Countries," OECD Economic Studies, OECD Publishing, vol. 2003(2), pages 109-161.
    • Handle: RePEc:oec:ecokaa:5lmqcr2jcl5l
    DOI: 10.1787/eco_studies-v2003-art10-en
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    Citations

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    Cited by:

    1. Herrera, Santiago & Pang, Gaobo, 2005. "Efficiency of public spending in developing countries : an efficiency frontier approach," Policy Research Working Paper Series 3645, The World Bank.
    2. Heinz Handler & Bertrand Koebel & Philipp Reiss & Margit Schratzenstaller, 2005. "The Size and Performance of Public Sector Activities in Europe," WIFO Working Papers 246, WIFO.
    3. Mamatzakis, E. & Tsionas, M., 2018. "Revisiting the returns of public infrastructure in Mexico: A limited information local likelihood estimation," Economic Modelling, Elsevier, vol. 75(C), pages 132-141.
    4. Teresa Curristine & Zsuzsanna Lonti & Isabelle Joumard, 2007. "Improving Public Sector Efficiency: Challenges and Opportunities," OECD Journal on Budgeting, OECD Publishing, vol. 7(1), pages 1-41.
    5. Christl, Michael & Köppl-Turyna, Monika & Kucsera, Dénes, 2018. "Public sector efficiency in Europe: Long-run trends, recent developments and determinants," Working Papers 14, Agenda Austria.
    6. John Wanna, 2010. "Investigating the Reality of Reform in Modern Budgeting," Chapters, in: John Wanna & Lotte Jensen & Jouke de Vries (ed.), The Reality of Budgetary Reform in OECD Nations, chapter 1, Edward Elgar Publishing.
    7. Santiago Herrera & Gaobo Pang, 2006. "How Efficient is Public Spending in Education?," Revista ESPE - Ensayos sobre Política Económica, Banco de la Republica de Colombia, vol. 24(51), pages 136-201, June.
    8. William Tompson, 2007. "From "Clientelism" to a "Client-Centred Orientation"? The Challenge of Public Administration Reform in Russia," OECD Economics Department Working Papers 536, OECD Publishing.
    9. Lucie Sedmihradská & Jakub Haas, 2013. "Budget Transparency and Fiscal Performance: Do Open Budgets Matter?," ACTA VSFS, University of Finance and Administration, vol. 7(2), pages 109-122.
    10. Hans Pitlik & Kristina Budimir & Norbert Gruber, 2010. "Optionen einer ausgabenseitigen Budgetkonsolidierung," WIFO Monatsberichte (monthly reports), WIFO, vol. 83(3), pages 247-267, March.
    11. Mroczek Teresa & Skica Tomasz & Rodzinka Jacek, 2018. "Application of Probabilistic Inference in Defining Impact of the General Government Sector’s Size on the Economy and Determining the Size of the Sector by the Economy in the EU," Financial Internet Quarterly (formerly e-Finanse), Sciendo, vol. 14(1), pages 1-11, March.
    12. Margit Schratzenstaller, 2006. "Teilstudie 12: Wachstumsimpulse durch die öffentliche Hand," WIFO Studies, WIFO, number 27451.
    13. Vratislav Izák & Eva Dufková, 2006. "Výdaje na sociální péči - nové státy Evropské unie a Česká republika [Expenditure on social protection-new EU member states and the Czech republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2006(6), pages 762-777.
    14. López-Herrera, Carmen & Cordero, José M. & Pedraja-Chaparro, Francisco & Polo, Cristina, 2023. "Fiscal rules and their influence on public sector efficiency," MPRA Paper 119018, University Library of Munich, Germany.

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