Efficiency analysis of social protection expenditure in the Italian Regions

Abstract

The attention and demand for greater social protection is increasing among the populations of all European countries. It is difficult to identify which of the structures and infrastructures, sectors and regional budgets are inefficient and/or negligent in respect of providing more social protection. In the political sphere the problem is examined from a qualitative point of view, because it is essential to have a valid decisional support system that provides useful information for structural and economic intervention programs devised to improve social protection. Regional spending on social protection is a fundamental component of individual well-being. This work is precisely aimed at assessing individual well-being in terms of technical expenses efficiency in the Italian Regions. Stochastic frontier analysis and a nonparametric deterministic model structure are the tools used to investigate the social protection determinants in the paper.