The efficiency frontier as a method for gauging the performance of public expenditure: a Belgian case study. NBB Working Papers. No. 138, 12 September 2008

Eugène, Bruno. (2008) The efficiency frontier as a method for gauging the performance of public expenditure: a Belgian case study. NBB Working Papers. No. 138, 12 September 2008.

Abstract

This paper uses the Free Disposal Hull framework in order to assess the relative efficiency of Belgian general government in the field of health care, education and public order and safety. In order to do so, this paper aggregates a large number of outcome indicators. Several drawbacks indicate that results must be interpreted cautiously. These drawbacks aside, the analysis reveals that Belgium is relatively efficient in the field of health care. As a whole, the Belgian education system is more expensive but also produces better results than the European average. However, an analysis based on a limited set of indicators reveals that the French-speaking education sector is very inefficient while the Flemish Community’s efficiency is markedly better. As far as public order and safety are concerned, major improvements could and should be made, either to improve service or cut costs.