A three-stage DEA-based efficiency evaluation of social security expenditure in China

There is an increasingly growth of China's social security expenditure(SSE) during the past decade. Regarding to the great responsibility and impact on citizens' welfare and economic development, the efficiency of social security expenditure has inevitably become the focus of growing attention. Based on Chinese provincial panel data over the period 2007-2016, a three-stage DEA model was conducted and found that the efficiency level of 29 provinces/municipalities did not reach the efficiency frontier. Environmental factors and statistical noises have a significant impact on the efficiency of SSE, if environmental factors and statistical noises are not considered, the efficiency of SSE in China is likely to be underestimated. The regional differences in the efficiency of SSE were significant and ranked by descending order as follows: central region, eastern region and western region.