The Efficiency and Productivity of Government Health Expenditures in Iran and Countries with High Human Development Index

Given the limited government resources, increasing the efficiency and the productivity of using those resources is an important and challenging issue in every country. Thus, the aim of this study was to measure the efficiency and the productivity of the government health expenditures in Iran and other countries with high human development index (HDI) over the period of 1995-2014.Methods: This descriptive study used panel data of Iran and high-HDI countries to measure the efficiency and the productivity of government health expenditure. The non-parametric data envelopment analysis (DEA) method and Malmquist productivity index (MPI) were used.

The calculated average technical efficiency for Iran and high-HDI countries was 45 and 52 percent, respectively. A total factor productivity changes (TFP) of 0.93 and 0.99 was observed in Iran and high-HDI countries, respectively.

Technological efficiency changes have a major impact on the total factor productivity in Iran and high-HDI countries. By identifying the efficiency trend in different years, new proposals can be brought forward to increase the efficiency of government health expenditure in upcoming years.