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The Efficiency of Public Expenditure, Evidence from the Czech Republic
Název práce v češtině: The Efficiency of Public Expenditure, Evidence from the Czech Republic
Název v anglickém jazyce: The Efficiency of Public Expenditure, Evidence from the Czech Republic
Klíčová slova: veřejné výdaje, efektivita, Česká republika
Klíčová slova anglicky: public spending, efficiency, Czech Republic
Akademický rok vypsání: 2014/2015
Typ práce: diplomová práce
Jazyk práce: angličtina
Ústav: Institut ekonomických studií (23-IES)
Vedoucí / školitel: PhDr. Jan Zápal, Ph.D.
Řešitel: skrytý - zadáno vedoucím/školitelem
Datum přihlášení: 19.05.2015
Datum zadání: 20.05.2015
Datum a čas obhajoby: 22.06.2016 11:30
Místo konání obhajoby: IES
Datum odevzdání elektronické podoby:09.05.2016
Datum proběhlé obhajoby: 22.06.2016
Oponenti: doc. Ing. Ondřej Schneider, M.Phil., Ph.D.
 
 
 
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Seznam odborné literatury
Afonso, A., Schuknecht, L., & Tanzi, V., (2005). “Public Sector Efficiency: An international comparison, “ Public Choice, Springer, vol. 123(3), pages 321-347, June.
Afonso, A., Schuknecht, L., & Tanzi, V. (2010) “Public sector efficiency: evidence for new EU member states and emerging markets”, Applied Economics, vol. 42(17), pages 2147-2164
Afonso, A. and Fernandes, S. (2006) “Local government spending efficiency: DEA evidence for the Lisbon region”, Regional Studies, 40, 39–53.
De Borger, B., & Kerstens, K. (1994). "Cost efficiency of Belgian local governments: A comparative analysis of FDH, DEA and econometric approaches," SESO Working Papers 1994002, University of Antwerp, Faculty of Applied Economics.
Coelli, Rao, Battese (2005) “An Introduction to Efficiency and Productivity Analysis”, 2nd edition, Kluwer Academic Publishers, Massachusetts.
Mandl, U., Dierx, A., & Ilzkovitz, F. (2008). “The effectiveness and efficiency of public spending” (No. 301). Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
Sutherland, D., Price, R., Joumard, I., & Nicq, C. (2007). “Performance Indicators for Public Spending Efficiency in Primary and Secondary Education”. OECD. Economics Department Working Paper, No. 546
Předběžná náplň práce
Efficiency of public spending is one of the key problems in each country or region. If resources are spent efficiently more can be accomplished or spare resources may serve a different purpose. However, to approach efficiency it has to be measured whether and where the inefficiency occurs. The theoretical literature offers several methods to analyse efficiency. Each of them displays some advantages and disadvantages.

This thesis builds on Afonso, Schuknecht & Tanzi (2005 & 2010) and their application of three main methods of efficiency measurement (composite indicators, Data Envelopment Analysis, Free Disposal Hull) to a set of European countries. Along with the methods used by Afonso et al. other approaches are compared, such as in Coelli, Rao, Battese (2005). The inspiration to focus on regions instead of countries came from De Borger & Kerstens (1994) who used Belgian data on municipalities to assess the efficiency even on lower statistical units.

The first part of the thesis will describe different methods used to assess the efficiency of public spending. These include for example Data Envelopment Analysis method, as well as Free Disposal Hull or Stochastic Frontier methods. These methods will be first described and compared theoretically and then used on Czech data. The paper seeks to analyse the efficiency of public spending in the 14 Czech administrative regions. The goal is to compare the results not only among the regions, but also across the different methods. If data allows, the results could be used to compare efficiency before and after the Czech Republic entered the European Union.

The thesis plans to summarize and describe methods of efficiency analysis that are currently used in the literature. It seeks to compare these methods theoretically as well as practically – in the analysis of spending efficiency in Czech regions. There have not yet been many analyses treating the efficiency of public spending in the Czech Republic and most of these focus just on education sector while this thesis aims to analyse the overall efficiency. While specialization offers a deeper insight into what measures should be taken to improve the efficiency of spending in particular regions, the general approach allows the comparison across the Czech Republic on a higher level. It is not common as well to choose regions as the units of interest as most papers focus on the whole countries thus not taking into account possible large difference between regions.

It is expected that this work will contribute to the theoretical literature on the methods of efficiency assessment for smaller geographical units than countries, as well as to the research by comparing Czech regions historically and geographically. The last part of the analysis – the possible change of efficiency due to accession to European Union – is meant to inform whether the potential inefficiency caused by access to additional resources is offset by higher fiscal control.
Předběžná náplň práce v anglickém jazyce
Efficiency of public spending is one of the key problems in each country or region. If resources are spent efficiently more can be accomplished or spare resources may serve a different purpose. However, to approach efficiency it has to be measured whether and where the inefficiency occurs. The theoretical literature offers several methods to analyse efficiency. Each of them displays some advantages and disadvantages.

This thesis builds on Afonso, Schuknecht & Tanzi (2005 & 2010) and their application of three main methods of efficiency measurement (composite indicators, Data Envelopment Analysis, Free Disposal Hull) to a set of European countries. Along with the methods used by Afonso et al. other approaches are compared, such as in Coelli, Rao, Battese (2005). The inspiration to focus on regions instead of countries came from De Borger & Kerstens (1994) who used Belgian data on municipalities to assess the efficiency even on lower statistical units.

The first part of the thesis will describe different methods used to assess the efficiency of public spending. These include for example Data Envelopment Analysis method, as well as Free Disposal Hull or Stochastic Frontier methods. These methods will be first described and compared theoretically and then used on Czech data. The paper seeks to analyse the efficiency of public spending in the 14 Czech administrative regions. The goal is to compare the results not only among the regions, but also across the different methods. If data allows, the results could be used to compare efficiency before and after the Czech Republic entered the European Union.

The thesis plans to summarize and describe methods of efficiency analysis that are currently used in the literature. It seeks to compare these methods theoretically as well as practically – in the analysis of spending efficiency in Czech regions. There have not yet been many analyses treating the efficiency of public spending in the Czech Republic and most of these focus just on education sector while this thesis aims to analyse the overall efficiency. While specialization offers a deeper insight into what measures should be taken to improve the efficiency of spending in particular regions, the general approach allows the comparison across the Czech Republic on a higher level. It is not common as well to choose regions as the units of interest as most papers focus on the whole countries thus not taking into account possible large difference between regions.

It is expected that this work will contribute to the theoretical literature on the methods of efficiency assessment for smaller geographical units than countries, as well as to the research by comparing Czech regions historically and geographically. The last part of the analysis – the possible change of efficiency due to accession to European Union – is meant to inform whether the potential inefficiency caused by access to additional resources is offset by higher fiscal control.
 
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