Various applications require multilevel settings (e.g., for estimating fixed and random effects). However, due to the curse of dimensionality, the literature on non-parametric efficiency analysis did not yet explore the estimation of performance drivers in highly multilevel settings. As such, it...

This article examines whether the efficiency and effectiveness of the government linearly depends on the size of the public spending. We show that countries with a larger government do not systematically achieve better results than countries with a smaller government. Therefore, by the use of a...