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Enhancing the efficiency of education and health spending is a key policy challenge in G7 countries. The paper assesses this efficiency and seeks to establish a link between differences in efficiency across countries and policy and institutional factors. The findings suggest that reforms aimed at increasing efficiency need to take into account the nature and causes of inefficiencies. Inefficiencies in G7 countries mostly reflect lack of cost effectiveness in acquiring real resources, such as teachers and pharmaceuticals. We also find that high wage spending is associated with lower efficiency. In addition, lowering student-teacher ratios is associated with reduced efficiency in the education sector, while immunizations and doctors' consultations coincide with higher efficiency in the health sector. Greater autonomy for schools seems to raise efficiency in secondary education.

Public Finance --- Education: General --- National Government Expenditures and Health --- National Government Expenditures and Education --- Health: General --- National Government Expenditures and Related Policies: General --- Public finance & taxation --- Education --- Health economics --- Health care spending --- Education spending --- Health --- Expenditure --- Expenditures, Public --- Germany

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This paper studies the evolution of worldwide military spending during 1970-2018. It finds that military spending in relation to GDP is converging, but into three separate groups of countries. In the largest group, responsible for 90 percent of worldwide spending, outlays have remained stubbornly high. Military spending in developing economies reacts to improvements in security conditions and military spending in neighboring countries, suggesting that further increases in the peace dividend are possible. In developing economies, rising social spending tends to crowd out military outlays, but this is not the case in advanced economies. With social outlays projected to rise as developing countries look to achieve the Sustainable Development Goals (SDGs), military spending could come under pressure to fall further.

Expenditures, Public. --- Appropriations and expenditures --- Government appropriations --- Government expenditures --- Government spending --- Public expenditures --- Public spending --- Spending, Government --- Finance, Public --- Public administration --- Government spending policy --- Public Finance --- National Government Expenditures and Related Policies: General --- National Government Expenditures and Health --- National Government Expenditures and Education --- National Security and War --- Public finance & taxation --- Defense spending --- Expenditure --- Health care spending --- Total expenditures --- Education spending --- Expenditures, Public --- United Kingdom

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Inequality in Uganda rose during 1989–95, although this rise moderated in 1993–95. In 1993–95, real food consumption became more equal. Regional and urban-rural disparities in income and variations in income accruing to individuals with different educational levels principally explain “between group inequality.” While informal safety nets appear to work for Ugandan middle-class families, a lack of mutual insurance among poor production workers and farmers accentuates the inequality trends. An expansion of formal safety nets would help this segment of the population. The intrasectoral allocation and benefit incidence of expenditures on education and health can be improved to reduce inequality.

Macroeconomics --- Public Finance --- National Government Expenditures and Health --- National Government Expenditures and Education --- National Government Expenditures and Welfare Programs --- Welfare, Well-Being, and Poverty: General --- Aggregate Factor Income Distribution --- Personal Income, Wealth, and Their Distributions --- Macroeconomics: Consumption --- Saving --- Wealth --- National Government Expenditures and Related Policies: General --- Public finance & taxation --- Income inequality --- Personal income --- Income distribution --- Consumption --- Expenditure --- National accounts --- Income --- Economics --- Expenditures, Public --- Uganda

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"Empirical studies of the relationship between school inputs and test scores typically do not account for the fact that households will respond to changes in school inputs. We present a dynamic household optimization model relating test scores to school and household inputs, and test its predictions in two very different low-income country settings - Zambia and India. We measure household spending changes and student test score gains in response to unanticipated as well as anticipated changes in school funding. Consistent with the optimization model, we find in both settings that households offset anticipated grants more than unanticipated grants. We also find that unanticipated school grants lead to significant improvements in student test scores but anticipated grants have no impact on test scores. Our results suggest that naive estimates of public education spending on learning outcomes that do not account for optimal household responses are likely to be considerably biased if used to estimate parameters of an education production function"--National Bureau of Economic Research web site.

Government Expenditures and Education --- Analysis of Education --- Human Resources • Human Development • Income Distribution • Migration

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During the transition process, many existing social sector institutions and policies were significantly eroded and their underlying character changed. As a result, they often do not redistribute to the poorest, nor generally serve the role of facilitating economic change. Social sector reforms have therefore become necessary for reasons of social welfare as well as economic growth. The analysis of eleven transition countries—comprising some of the most advanced as well as some of the poorest transition economies—shows that almost all countries have started to undertake reforms; however, their individual efforts vary. Reform does not only stand for cutting back, but also requires in some cases a building up and in others a redesign of social safety nets; it needs to address insurance issues, budgetary transfer programs, the performance of the health and education sector, as well as the labor market regime and the approach to tax administration.

Public Finance --- Health Policy --- National Government Expenditures and Health --- National Government Expenditures and Education --- National Government Expenditures and Welfare Programs --- Social Security and Public Pensions --- Comparative Studies of Countries --- Socialist Institutions and Their Transitions: Public Economics --- Education: General --- Analysis of Health Care Markets --- National Government Expenditures and Related Policies: General --- Public finance & taxation --- Education --- Health systems & services --- Pensions --- Health care --- Expenditure --- Health care spending --- Pension spending --- Social assistance spending --- Health --- Expenditures, Public --- Medical care --- Poland, Republic of