The Use and Usefulness of Performance Measures in the Public Sector

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The Use and Usefulness of Performance Measures in the Public Sector

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Carol Propper
Deborah Wilson ()

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Abstract

The paper focuses on the empirical evidence on the use and usefulness of performance measures in the public sector. It begins with consideration of the features of the public sector which make the use of performance measures complex: the issues of multiple principals and multiple tasks. It discusses the form that performance measures may take, the use made of these measures and the responses that individual may make to them. Empirical examples from the fields of education and health, with a focus on the US and UK, are examined. There is clear evidence of responses to such measures. Some of these responses improve efficiency, but others do not and fall into the category of ‘gaming’. Generally, there has been little assessment of whether performance measures bring about improvements in service. The paper ends with consideration of how such measures should be used and what measures are useful to collect.

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Publisher Info
Paper provided by Department of Economics, University of Bristol, UK in its series The Centre for Market and Public Organisation with number 03/073.

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Length: 25 pages
Date of creation: May 2003
Date of revision:
Handle: RePEc:bri:cmpowp:03/073

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Article
- Carol Propper & Deborah Wilson, 2003. "The Use and Usefulness of Performance Measures in the Public Sector," Oxford Review of Economic Policy, Oxford University Press, vol. 19(2), pages 250-267, Summer.

Find related papers by JEL classification:
H4 - Public Economics - - Publicly Provided Goods
J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

This paper has been announced in the following NEP Reports:

NEP-ALL-2003-11-03 (All new papers)
NEP-CDM-2003-11-03 (Collective Decision-Making)
NEP-MFD-2003-11-03 (Microfinance)

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Burgess, Simon & Gossage, Denise & Propper, Carol, 2003. "Explaining Differences in Hospital Performance: Does the Answer Lie in the Labour Market?," CEPR Discussion Papers 4118, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Simon Burgess & Denise Gossage & Carol Propper, 2003. "Explaining differences in hospital performance: Does the answer lie in the labour market?," The Centre for Market and Public Organisation 03/091, Department of Economics, University of Bristol, UK. [Downloadable!]
Patrick Francois, 2004. "'Making a Difference': Labor Donations in the Production of Public Goods," The Centre for Market and Public Organisation 04/093, Department of Economics, University of Bristol, UK. [Downloadable!]
Tovmo Per & Revelli Federico, 2006. "Declared vs. revealed yardstick competition: local government efficiency in Norway," Department of Economics Working Papers 200605, University of Turin. [Downloadable!]
Francois, Patrick, 2005. "Making A Difference," CEPR Discussion Papers 5158, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Francois, Patrick, 2005. "Making A Difference," CEPR Discussion Papers 5301, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Deborah Wilson & Bronwyn Croxson & Adele Atkinson, 2004. "“What Gets Measured Gets Done”: Headteachers’ Responses to the English Secondary School," The Centre for Market and Public Organisation 04/107, Department of Economics, University of Bristol, UK. [Downloadable!]
Helen Simpson, 2007. "Productivity in Public Services," The Centre for Market and Public Organisation 07/164, Department of Economics, University of Bristol, UK. [Downloadable!]
Other versions:
- Helen Simpson, 2009. "Productivity In Public Services," Journal of Economic Surveys, Blackwell Publishing, vol. 23(2), pages 250-276, 04. [Downloadable!] (restricted)
Carol Propper, 2005. "Why economics is good for your health. 2004 Royal Economic Society Public Lecture," Health Economics, John Wiley & Sons, Ltd., vol. 14(10), pages 987-997. [Downloadable!]
Other versions:
- Carol Propper, 2004. "Why Economics is good for your health - 2004 Royal Economic Society Public Lecture," The Centre for Market and Public Organisation 05/116, Department of Economics, University of Bristol, UK. [Downloadable!]
Clare Leaver & Gian Luigi Albano, 2004. "Transparency, Recruitment and Retention in the Public Sector," Economics Series Working Papers 219, University of Oxford, Department of Economics. [Downloadable!]
Revelli Federico, 2008. "Spend more, get more? An inquiry into English local government performance," Department of Economics Working Papers 200804, University of Turin. [Downloadable!]
Deborah Wilson & Anete Piebalga, 2008. "Accurate performance measure but meaningless ranking exercise? An analysis of the English school league tables," The Centre for Market and Public Organisation 07/176, Department of Economics, University of Bristol, UK. [Downloadable!]
Kuhn, Michael & Siciliani, Luigi, 2007. "Performance Indicators for Quality with Adverse Selection, Gaming and Inequality Aversion," CEPR Discussion Papers 6261, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Gian Luigi Albano & Clare Leaver, 2005. "Transparency, Recuitment and Retention in the Public Sector," The Centre for Market and Public Organisation 05/132, Department of Economics, University of Bristol, UK. [Downloadable!]

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