Abstract
This paper investigates the political determinants of public sector efficiency using a cross-national data from 117 countries in the period of 2001 to 2010, with a two-stage DEA method. The first-stage DEA method finds two types of efficiency frontiers, developing-country frontiers and developed-country frontiers, and governments in developed countries on average have better efficiency than those in developing countries. Tobit estimation in the second stage finds that not the level of democracy but the persistence of democracy and current regimes contribute robustly to public sector efficiency by providing high quality institutions with respect to property rights protection and freedom from corruption.
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