Measuring Efficiency and Effectiveness in the Public Sector
AbstractThe distinction between the concepts outputs and outcomes can be made operational based on the consideration of the degree of control a public service producer has over its production activity. Resources are transformed into service outputs under the control of the organisation in question, while outcomes represent some higher social goals than outputs and are determined by the outputs and other exogenous variables, but the production of outcomes is outside the control of the organisation. The link to the calculation of savings potentials and efficiency measurement is provided based on introducing the concept of a benchmark frontier technology for the type of production in question. A new measure of overall preference efficiency is introduced and its decomposition into output-oriented technical efficiency and output mix efficiency is shown. The rather monumental task of providing the necessary information for calculating mix efficiency is highlighted.
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Bibliographic InfoPaper provided by Oslo University, Department of Economics in its series Memorandum with number 16/2013.
Length: 38 pages
Date of creation: 12 Jul 2013
Date of revision:
Contact details of provider:
Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
outputs; outcomes; factorially dete rmined multioutput production; Farrell efficiency measures; savings potentials; overall preference effectiveness; output mix effectivenes;
Find related papers by JEL classification:
- D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
- H40 - Public Economics - - Publicly Provided Goods - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-26 (All new papers)
- NEP-CSE-2013-09-26 (Economics of Strategic Management)
- NEP-EFF-2013-09-26 (Efficiency & Productivity)
- NEP-REG-2013-09-26 (Regulation)
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.:
- Ruggiero, John, 1996. "Efficiency of Educational Production: An Analysis of New York School Districts," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 499-509, August.
- Finn Førsund & Nikias Sarafoglou, 2002.
"On the Origins of Data Envelopment Analysis,"
Journal of Productivity Analysis,
Springer, vol. 17(1), pages 23-40, January.
- Boaz Golany & Eran Tamir, 1995. "Evaluating Efficiency-Effectiveness-Equality Trade-Offs: A Data Envelopment Analysis Approach," Management Science, INFORMS, vol. 41(7), pages 1172-1184, July.
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