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On Measuring Aggregate "Social Efficiency."

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  • Ravallion, Martin

Abstract

Cross-country comparisons of social indicators controlling for income and/or social spending have been widely used to measure and explain "social efficiency," analogously to "technical efficiency" in production. The article argues that these methods are clouded in ambiguities about what is being measured. Standard methods of measuring technical efficiency require assumptions that are unlikely to hold for social indicators. In the context of a simple parametric model of life expectancy, conditions are identified under which there will be a systematic pattern of bias in estimates of efficient public health spending.

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  • Ravallion, Martin, 2005. "On Measuring Aggregate "Social Efficiency."," Economic Development and Cultural Change, University of Chicago Press, vol. 53(2), pages 273-292, January.
    • Handle: RePEc:ucp:ecdecc:y:2005:v:53:i:2:p:273-92
    DOI: 10.1086/425380
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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. Martin Binder & Tom Broekel, 2011. "Applying a Non-parametric Efficiency Analysis to Measure Conversion Efficiency in Great Britain," Journal of Human Development and Capabilities, Taylor & Francis Journals, vol. 12(2), pages 257-281.
    3. Tausch, Arno & Heshmati, Almas, 2009. "Asabiyya: Re-Interpreting Value Change in Globalized Societies," IZA Discussion Papers 4459, Institute of Labor Economics (IZA).
    4. Martin Binder & Tom Broekel, 2012. "Happiness No Matter the Cost? An Examination on How Efficiently Individuals Reach Their Happiness Levels," Journal of Happiness Studies, Springer, vol. 13(4), pages 621-645, August.
    5. 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.
    6. Cavalcanti Teixeira, Louisiana, 2019. "Labor standards and social conditions in free trade zones: The case of the Manaus free trade zone," Economics Discussion Papers 2019-69, Kiel Institute for the World Economy (IfW Kiel).
    7. Stefano Paternostro & Anand Rajaram & Erwin R. Tiongson, 2007. "How Does the Composition of Public Spending Matter?," Oxford Development Studies, Taylor & Francis Journals, vol. 35(1), pages 47-82.
    8. Temple, Jonathan R.W., 2010. "Aid and Conditionality," Handbook of Development Economics, in: Dani Rodrik & Mark Rosenzweig (ed.), Handbook of Development Economics, edition 1, volume 5, chapter 0, pages 4415-4523, Elsevier.
    9. Enlinson Mattos & Fabiana Rocha & Lucas Novaes & Paulo Arvate & Verônica Orellano, 2009. "Economias de escala na oferta de serviços públicos de saúde: um estudo para os municípios paulistas," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 10(2), pages 357-386.
    10. Rouselle Lavado & Emilyn Cabanda, 2009. "The efficiency of health and education expenditures in the Philippines," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 17(3), pages 275-291, September.
    11. Estache, A. & Gonzalez, M. & Trujillo, L., 2007. "Government expenditure on education, health and infrastructure: a naive look at levels, outcomes and efficiency," Working Papers 07/03, Department of Economics, City University London.
    12. Tausch, Arno, 2008. "The Efficiency of Social Expenditures in the Fight Against Extreme Poverty in Europe [Die Effizienz Der Sozialausgaben Im Kampf Gegen Extreme Armut in Europa]," MPRA Paper 10612, University Library of Munich, Germany.
    13. Tausch, Arno, 2008. "On the world market trajectory of 21 major book publishing companies in globalization and European studies in 100+ countries. From “Amsterdam University Press” via “Palgrave” and “Nova Science Publish," MPRA Paper 9613, University Library of Munich, Germany.
    14. repec:bdr:ensayo:v::y:2006:i:51:p:136-201 is not listed on IDEAS

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