A Cross-Country Analysis of Public Sector Interventions’ Efficiency

Güran M. C., Tosun M. U.

Journal Of Economics, vol.56, no.2, pp.182-211, 2008 (SSCI)

  • Publication Type: Article / Article
  • Volume: 56 Issue: 2
  • Publication Date: 2008
  • Journal Name: Journal Of Economics
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus
  • Page Numbers: pp.182-211
  • Hacettepe University Affiliated: Yes


In this study, our aim is to measure public sector efficiency and to evaluate the efficiency of public sector economic interventions. We use the rule of law & bureaucratic quality, allocation, economic stability, economic growth and in-come distribution as outputs; public expenditure and regulation as inputs. In the study, we compute public sector efficiency scores by using a non-parametric, relative efficiency measurement technique, Data Envelopment Analysis (DEA), for 51 counties between 1995 and 2000. The study finds that overall public sec-tor efficiency increases from 1995 to 2000 and there is a positive relationship between the efficiency of public sector and the level of economic development. Furthermore, we also find that a negative relationship between public sector intervention and the efficiency scores. Finally, it is found that the regulation tool is wasted in comparison with the expenditure tool.