scholarly journals Efficiency of social sector expenditure in India: a case of health and education in selected Indian states

2014 ◽  
Vol 2 (1) ◽  
Author(s):  
Brijesh C. Purohit
Keyword(s):  
Health Care ◽  
Private Sector ◽  
Nutrition Education ◽  
State Government ◽  
Stochastic Frontier Analysis ◽  
Stochastic Frontier ◽  
Social Sector ◽  
Indian States ◽  
Free Disposal Hull ◽  
Frontier Analysis

Social sector expenditure in India captures a number of important aspects including health, nutrition, education, water supply, sanitation, housing and welfare, among others. Over a period of time, besides budgetary outlay on this sector, private sector has also played a considerable role. Thus, efficiency of expenditure in this sector by state government has to be reckoned both in terms of relative levels of various aspects across the states and in terms of comparable benchmarks for different aspects of the sector. This paper attempts an analysis of social sector efficiency focusing on two major aspects: health and education. Unlike other studies on the Indian context, this analysis focusing on major states in India uses both non-parametric and parametric approaches. Although both approaches provide benchmarks to judge relative efficiency across states, the former provides a yardstick more at an aggregative level without parametric restrictions, whereas the latter is used for major focus on health care aspects. Results of free disposal hull analysis are suggestive of a considerably more scope for improvement in efficiency of public expenditure in health relative to education. Our results of stochastic frontier analysis indicate considerable state level disparities which could be reduced through a mix of strategies involving reallocation of factors (namely, manpower and supply of consumables) within the sector, mobilizing additional resources possibly through enhanced budgetary emphasis, or encouraging more private sector participation. Based on our results, this may enhance efficiency by nearly 20% in health care sector and increase availability and equity across low performing and poorer states like Madhya Pradesh and Uttar Pradesh.

Why Tax Effort Falls Short of Tax Capacity in Indian States

2016 ◽  
Vol 45 (2) ◽  
pp. 232-259 ◽  
Author(s):  
Sandhya Garg ◽  
Ashima Goyal ◽  
Rupayan Pal
Keyword(s):  
Stochastic Frontier Analysis ◽  
Political Competition ◽  
Stochastic Frontier ◽  
Positive Association ◽  
Negative Association ◽  
Intergovernmental Transfers ◽  
Indian States ◽  
Frontier Analysis ◽  
Tax Effort ◽  
Tax Capacity

This article attempts to measure tax capacity and tax effort of fourteen major Indian states from 1991–1992 to 2010–2011 using stochastic frontier analysis. It shows that the variation across states in tax effort is wide and increasing over time. While per capita gross state domestic product, literacy rate, and labor force participation have positive association with tax capacity, a greater share of agriculture has negative association. Furthermore, intergovernmental transfers, given tax capacity, have negative association with tax effort of states. Expenditure on debt repayment is also adversely associated with tax effort but to a lower extent than outstanding liabilities. Enactment of Fiscal Responsibility and Budget Management Act is associated with improvement in states’ tax effort. Both within-state political competition and governance indicators have positive association on tax effort.

Measuring Organizational Performance

2011 ◽  
pp. 687-706
Author(s):  
James F. Burgess ◽  
Andrew Street
Keyword(s):  
Health Care ◽  
Organizational Performance ◽  
Production Process ◽  
Stochastic Frontier Analysis ◽  
Health Care Organizations ◽  
Stochastic Frontier ◽  
Health Sector ◽  
Analytical Techniques ◽  
Frontier Analysis ◽  
Principal Agent Model

This article describes econometric approaches to comparing the efficiency of health care organizations. It deals with organizational performance measurement by first formulating a principal-agent model in which a regulator (principal) delegates responsibility to health care organizations (agents) to advance a subset of overall health sector objectives. Both effort and efficiency have to be estimated indirectly, after taking account of measurable phenomena, such as inputs, outputs, and constraints on the production process. This article considers four issues fundamental to the development of an efficiency model in an economic context, regarding appropriate unit of analysis, relevant system outputs, and constraints on the production process. This is followed by a review of the main analytical techniques used to assess efficiency, namely, stochastic frontier analysis and data envelopment analysis. Finally, it concludes that despite the challenges in measuring and comparing organizational performance, considerable analytical advances allow greater confidence to be placed in the results of analysis.

scholarly journals Technical efficiency of health-care systems in selected middle-income countries: an empirical investigation

2020 ◽  
Vol 5 (4) ◽  
pp. 267-287
Author(s):  
Heba Nassar ◽  
Hala Sakr ◽  
Asmaa Ezzat ◽  
Pakinam Fikry
Keyword(s):  
Health Care ◽  
Technical Efficiency ◽  
Stochastic Frontier Analysis ◽  
Health Care Systems ◽  
Stochastic Frontier ◽  
Middle Income ◽  
Content Type ◽  
Frontier Analysis ◽  
Middle Income Countries ◽  
Care Systems

Purpose This paper aims to evaluate the technical efficiency of the health-care systems in 21 selected middle-income countries during the period (2000–2017) and determine the source of inefficiency whether it is transient (short run) or persistent (long run). Design/methodology/approach The study uses the stochastic frontier analysis technique through employing the generalized true random effects model which overcomes the drawbacks of the previously introduced stochastic frontier models and allows for the separation between unobserved heterogeneity, persistent inefficiency and transient inefficiency. Findings Persistent efficiency is lower than the transient efficiency; hence, there are more efficiency gains that can be made by the selected countries by adopting long-term policies that aim at reforming the structure of the health-care system in the less efficient countries such as South Africa and Russia. The most efficient countries are Vietnam, Mexico and China which adopted a social health insurance that covers almost the whole population with the aim of increasing access to health-care services. Also, decentralization in health-care has assisted in adopting health-care policies that are suitable for both the rural and urban areas based on their specific conditions and health-care needs. A key success in the implementation of the adopted long-term policies by those countries is the continuous monitoring and evaluation of their outcomes and comparing them with the predefined targets and conducting any necessary modifications to ensure their movement in the right path to achieve their goals. Originality/value Although several studies have evaluated the technical efficiency both across and within countries using non-parametric (data envelopment analysis) and parametric (stochastic frontier analysis) approaches, to the best of the authors’ knowledge, this is the first attempt to evaluate the technical efficiency of selected middle-income countries during the period (2000–2017) using the generalized true random effects stochastic frontier analysis model.

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