Efficiency of federal-to-state allocation of resources during administrations of brazilian presidents Lula and Dilma
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Abstract
Efficiency in public spending is a major challenge of public administration. In this study, the efficiency of allocation of federal resources to Brazil’s 27 states (UFs) during the administrations of presidents Lula and Dilma was assessed. To do so, data envelopment analysis (DEA) to the constant returns to scale model (Charnes, Cooper and Rhodes, 1978), known as CCR model, and the variable returns to scale model (Banker, Charnes and Cooper, 1984), named BCC model, output-oriented were applied. Spending on health care and education and mean household income was used as variables in the models, while the mean FIRJAN index of municipal development (IFDM) of each UF was adopted as outcome parameter. Subsequently, DEA-measured allocation efficiency was correlated with the GDP of each UF. Using CCR model (according to which efficiency is calculated assuming a proportionality between inputs and outputs), the number of efficient UFs was found to be significantly greater during Dilma administration. Using BCC model (according to which maximum efficiency is dependent on economy of scale), the number of efficient UFs was greater during Lula administration, but the difference was non-significant. Correlations were observed between CCR model and BCC model and between CCR model and GDP, but not between BCC model and GDP.
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