The role of public spending in economic growth: Envelopment methods

This research on the relationship between public spending and economic growth was conducted while correcting the public spending data by a factor of “productive efficiency”. The efficiency factor was calculated with the assistance of a Data Envelopment Analysis method (DEA), which is coherent with standard analysis of production functions (identification of best practices, as a prerequisite for the identification of a production frontier). This correction permits clear re-evaluation of the role of public spending in the process of economic growth. Social, education and health spending are particularly concerned.