Efficiency in public expenditures in the Brazilian states in the areas of health, security and education: a data envelopment analysis approach

Abstract

This paper assesses the efficiency in public expenses in the 26 Brazilian states in the areas of health, security and education. For this purpose, an approach in two steps is applied: the first, with the use of the methodology Data Envelopment Analysis – DEA, seeks to generate the results of relative efficiency; the second, by using censored regressions of the Tobit type, which non-discretionary factors would be influencing the efficiency scores. Furthermore, this work compares distinct appli¬cations of DEA in order to make an aggregate analysis, with the use of the Index of Performance of Public Sector (IPPS).