The efficiency of the spanish social protection system in poverty reduction

The aim of this study is to evaluate the level of efficiency of the Spanish Regions (CCAA) addressing the problem of reduction poverty on the two fronts: incidence and intensity, in 2000 using the Household Panel Survey. For this end, data envelopment analysis (DEA) is used as a technique to estimate the efficiency. By identifying efficient communities, the slack in inputs and outputs of inefficient regions and the reference group of these regions, Data Envelopment Analysis is presented as one of the most useful techniques for the improvement of the level of efficiency. The paper offers managers a tool that enables them to discover which part of the inefficiency is due to the misuse of resources and which lines of action may be taken to improve efficiency in terms of poverty reduction.