Arbeitspapier

A Tale of Government Spending Efficiency and Trust in the State

This paper empirically links the efficiency and performance assessment of the general government, proxied by efficiency scores, to the trust in government. Government spending efficiency scores are first computed via data envelopment analysis (DEA). Then, relying on panel data and instrumental variable approaches, we estimate the effect of public sector efficiency on citizens trust on national governments. The sample covers 36 OECD countries between 2007 and 2019. We find that the more efficient countries in terms of government spending are Australia, Chile, Ireland, New Zealand, South Korea, Switzerland. Secondly, our main finding is that better public sector spending efficiency is positively associated with citizens' higher trust in governments. In general, political economy variables and the existence of fiscal rules do not seem to significantly affect our measure of trust. Results were held using alternative proxies for public sector efficiency, specifications with different control variables and instrumental variables approaches.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 10075

Klassifikation
Wirtschaft
Semiparametric and Nonparametric Methods: General
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Financial Markets and the Macroeconomy
International Financial Markets
Structure, Scope, and Performance of Government
National Government Expenditures and Related Policies: General
Thema
government spending efficiency
DEA
panel data analysis
confidence effects
ideology
fiscal rules

Ereignis
Geistige Schöpfung
(wer)
Afonso, António
Jalles, João Tovar
Venâncio, Ana
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2022

Handle
Letzte Aktualisierung
10.03.2025, 11:42 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Afonso, António
  • Jalles, João Tovar
  • Venâncio, Ana
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2022

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