Abstract:

This paper presents a preliminary work to assessing the evolution of institutional quality in the EU. A static analysis of the “institutional” performance of the European countries along with OECD member states is carried out. The former analysis of DATA is given a more appropriate treatment by employing SBM efficiency measure instead of the radial one used in previous works.  Concentrating on desirable benchmark values of individual institutional quality areas rather than on exact efficiency scores, projections for analyzed countries are reported. The results confirm strong institutional background of the developed countries. The proposed improvement in methodology though generates lower benchmark values for lagging behind countries as well as less “peers” to follow. This may help decision makers “target” one single country instead of a bundle of those.