This paper is concerned with two things: finding an objective and easilyquantifiable measure of government efficiency and testing possible determinantsof government quality. As measures of government efficiency, we used ratios ofinfant mortality rate to health expenditures as a percentage of GDP, and ratios ofdrop out and illiteracy rates to education expenditures as a percentage of GDP.We assume that government efficiency in providing health and education servicesdepends on economic, political and cultural factors.
