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Competition and Efficiency in Publicly Funded Services

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Author Info
Jens Lundsgaard ()

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Abstract

This paper reviews the extent to which OECD countries have opened the provision of publicly funded services to competition among public and private suppliers. The paper lays out an analytical framework identifying the inherent incentive and efficiency issues associated with the provision of publicly funded services and outlines how they may be addressed via performance-related funding, benchmarking, contracting-out by public agencies and voucher schemes which allow users to choose among suppliers while maintaining public funding. Also, the empirical literature on contracting-out of technical and support services and on school choice is reviewed. In compulsory education, the provision mode is relatively uniform across OECD countries with most students by far attending public schools. However, the involvement of private institutions increase with education level and orientation towards occupational skills, and in many countries funding arrangements for public institutions are being ...

Concurrence et efficacité dans les services financés par le secteur public

Cette étude examine dans quelle mesure les pays de l'OCDE ont ouvert l'offre de services financés par l’Etat à la concurrence entre fournisseurs publics et privés. Elle définit un cadre analytique pour identifier les problèmes intrinsèques d'incitation et d'efficience associés à la prestation de services financés par l’Etat et montre brièvement comment ceux-ci peuvent être résolus avec un financement lié aux résultats, des analyses comparatives, des contrats de sous-traitance par les organismes publics et des programmes de coupons, de façon à permettre aux usagers de choisir entre plusieurs fournisseurs tout en maintenant les financements publics. Par ailleurs, le document passe en revue les études empiriques sur la sous-traitance des services techniques et de soutien et sur le choix de l'établissement scolaire. Au stade de la scolarité obligatoire, le mode de prestation est relativement uniforme dans l'ensemble des pays de l'OCDE, la très grande majorité des élèves fréquentant l’école ...

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Paper provided by OECD Economics Department in its series OECD Economics Department Working Papers with number 331.

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Date of creation: 06 Jun 2002
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Handle: RePEc:oec:ecoaaa:331-en

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Keywords: education dépenses publiques public expenditure efficiency and incentives contracting public private partnerships user choice vouchers long-term care employment service efficience et incitations passation de contrats partenariats public-privé choix de l'usager coupons éducation soins aux enfants soins de longue durée service pour l'emploi child care

Find related papers by JEL classification:
C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables
D20 - Microeconomics - - Production and Organizations - - - General
H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
I00 - Health, Education, and Welfare - - General - - - General
L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Boundaries of Public and Private Enterprise; Privatization; Contracting Out

Cited by:
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  1. Peter Birch Sørensen, 2004. "Outsourcing of Public Service Provision: When is it More Efficient?," EPRU Working Paper Series 04-06, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics. [Downloadable!]
  2. Peter Abelson, 2005. "Outsourcing of Public Services in Australia - Seven Case Studies," Research Papers 0503, Macquarie University, Department of Economics. [Downloadable!]
  3. Herwig Immervoll & David Barber, 2006. "Can Parents Afford to Work? Childcare Costs, Tax-Benefit Policies and Work Incentives," IZA Discussion Papers 1932, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Mark Pearson & John P. Martin, 2005. "Should We Extend the Role of Private Social Expenditure?," IZA Discussion Papers 1544, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Elke J. Jahn & Wolfgang Ochel, 2005. "Contracting Out Temporary Help Services in Germany," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
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This page was last updated on 2008-11-17.


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