Efficiency of Public Sector Organizations: Perspectives from Theories of Bureaucracy
AbstractEconomic insights on the provision of public goods and services by public sector organizations went hand in hand with probing questions on the efficient allocation of resources within them concerning neo-classical assumptions on the theory of firm (Coase, 1937; Alchian and Demsetz, 1972). The rationale behind the unprecedented divergences from the neo-classical firm postulations on the basis of not-to-operate at the efficient production frontier has attracted attentions of researchers working not only on the private firms but also on the public sector. This paper investigates theoretical underpinnings of efficient allocation of resources within public sector organizations on the basis of a variety of arguments. Before examining the (in) efficient usage of resources in the public sector that is mostly based on the theory of bureaucracy, methodological and practical challenges to measure the efficiency performances of public intuitions are visited. Subsequently, institutional framework on the public provision of goods and services is scrutinised referring particularly to the discussion on incentive schemes and efficiency.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 49386.
Date of creation: 30 Aug 2013
Date of revision:
Efficiency; Government Output; Public Sector Organizations; Bureaucracy;
Find related papers by JEL classification:
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-09-06 (All new papers)
- NEP-CSE-2013-09-06 (Economics of Strategic Management)
- NEP-EFF-2013-09-06 (Efficiency & Productivity)
- NEP-HME-2013-09-06 (Heterodox Microeconomics)
- NEP-HRM-2013-09-06 (Human Capital & Human Resource Management)
- NEP-PBE-2013-09-06 (Public Economics)
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