Determinants of public health care, education and administration efficiency in Central, Eastern and South Eastern Europe

Abstract

This paper explores determinants of public sector efficiency in 15 Central, Eastern and South Eastern European (CESEE) countries and identifies areas for improvement. Using Data Envelopment Analysis (DEA) and panel Tobit regressions, we analyse the efficiency of public expenditures on health care, education, and public administration. Empirical results indicate that the level of economic development, economic activity, demographics, level of education, and quality of institutions act as important determinants of public sector efficiency.