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Education and Health in G7 Countries: Achieving Better Outcomes with Less Spending
Author:
Ms. Victoria Gunnarsson
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Stéphane Carcillo
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Marijn Verhoevennull

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Series:
IMF Working Papers
Volume/Issue:
Volume 2007: Issue 263
Language:
English
Publication Date:
01 Nov 2007
DOI:
https://doi.org/10.5089/9781451868265.001
ISBN:
9781451868265
ISSN:
1018-5941
Pages:
50
Keywords:
WP; spending; country; public spending; health status; OECD ranking distribution
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Enhancing the efficiency of education and health spending is a key policy challenge in G7 countries. The paper assesses this efficiency and seeks to establish a link between differences in efficiency across countries and policy and institutional factors. The findings suggest that reforms aimed at increasing efficiency need to take into account the nature and causes of inefficiencies. Inefficiencies in G7 countries mostly reflect lack of cost effectiveness in acquiring real resources, such as teachers and pharmaceuticals. We also find that high wage spending is associated with lower efficiency. In addition, lowering student-teacher ratios is associated with reduced efficiency in the education sector, while immunizations and doctors' consultations coincide with higher efficiency in the health sector. Greater autonomy for schools seems to raise efficiency in secondary education.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2007: Issue 263