Policy evaluation and efficiency: a systematic literature review

This paper provides a systematic literature review of studies investigating the effect of an intervention on the efficiency of a decision-making unit, when efficiency is computed using nonparametric frontier approaches. This paper offers a guide for future research by identifying patterns in (1) the fields of application, (2) applied efficiency models, and (3) analysis of efficiency determinants. Our findings indicate that, despite the prominent role of frontier techniques in the analysis of public sector performances and the importance of the effectiveness and the policy perspective, these two approaches have long been kept separate. Nevertheless, the combination of efficiency and effectiveness is fundamental to evaluate public interventions and to detect inefficiencies at the policy level, especially in key sectors such as education, health, and environment.

Automated summary

This paper systematically reviews the impact of interventions on decision-making unit efficiency using nonparametric frontier approaches. It identifies patterns in fields of application, applied efficiency models, and analysis of efficiency determinants to guide future research. Although frontier techniques play a crucial role in analyzing public sector performance, the combination of efficiency and effectiveness has often been overlooked, especially in key sectors such as education, health, and environment.