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Evaluating the delivery performance of public spending programs from an efficiency perspective.

Nikolaos Pettas1, Ioannis Giannikos1

  • 1University of Patras, Greece.

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|May 10, 2014
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Summary

This study introduces a Data Envelopment Analysis (DEA) framework to evaluate the administrative efficiency of public economic development programs. DEA reveals operational and scale inefficiencies missed by traditional metrics, aiding program improvement.

Keywords:
Data Envelopment Analysis (DEA)EU LEADERPerformance managementPerformance measurementPublic policy implementation

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Area of Science:

  • Public Administration
  • Economic Development
  • Operations Research

Background:

  • Traditional performance evaluation of public economic development programs often overemphasizes outcomes, neglecting implementation efficiency.
  • Assessing administrative efficiency in public spending programs at the local level presents unique challenges due to complex tasks and interventions.

Purpose of the Study:

  • To present a novel framework for comparing the administrative efficiency of local public spending programs.
  • To apply Data Envelopment Analysis (DEA) to evaluate the delivery efficiency of the Greek LEADER operational program within the European Union context.

Main Methods:

  • Utilized a novel application of Data Envelopment Analysis (DEA) to assess program delivery or administrative efficiency.
  • Focused on operational and scale components of performance, considering the complex mix of tasks and interventions.

Main Results:

  • Data Envelopment Analysis (DEA) proved insightful in revealing administrative inefficiencies in program delivery.
  • DEA identified operational and scale inefficiencies that traditional performance metrics often overlook.
  • The application to the Greek LEADER operational program demonstrated the practical utility of the DEA framework.

Conclusions:

  • Data Envelopment Analysis (DEA) is a valuable tool for evaluating administrative efficiency in public spending programs.
  • The proposed DEA technique can support rational decision-making and enhance program improvement strategies.
  • Emphasizing implementation in performance evaluation, alongside outcomes, is crucial for effective public economic development programs.