It has long been recognised that the efficient function of the public sector is
a prerequisite for a country's competent economic performance. This paper aims
to identify a robust methodology for the measurement of the relative public
sector efficiency (government efficiency) of 19 OECD countries over the period
Data for five disaggregate accounts of public spending were employed and
relative efficiency scores estimated for each of them as well as for aggregate
public spending. The results suggest that the quality of governance is more
important than the socioeconomic environment or luck.
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