IDEAS home Printed from https://ideas.repec.org/a/psl/pslqrr/201344.html
   My bibliography  Save this article

The productivity of the public sector: A Classical view

Author

Listed:
  • Marcella Corsi

    (Sapienza University of Rome)

  • Carlo D'Ippoliti

    (Sapienza University of Rome)

Abstract

We define public administrations (PAs) as productive units, and analyze the recent trends in PAs' productivity applying Sylos Labini's productivity function model. At the microeconomic level, we propose a model of government action for the production of public goods. At the macroeconomic level, we underline the relevance of distinguishing the public and the private sectors in growth accounting exercises, and show that both sectors can fruitfully contribute to economic growth. A preliminary application of the model to the estimation of the impact of e-Government processes highlights a significant relationship between e-Government and PAs' productivity growth in a number of OECD countries.

Suggested Citation

  • Marcella Corsi & Carlo D'Ippoliti, 2013. "The productivity of the public sector: A Classical view," PSL Quarterly Review, Economia civile, vol. 66(267), pages 403-434.
    • Handle: RePEc:psl:pslqrr:2013:44
    as

    Download full text from publisher

    File URL: http://ojs.uniroma1.it/index.php/PSLQuarterlyReview/article/view/11547/11417
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gronroos, Christian & Ojasalo, Katri, 2004. "Service productivity: Towards a conceptualization of the transformation of inputs into economic results in services," Journal of Business Research, Elsevier, vol. 57(4), pages 414-423, April.
    2. Bart van Ark & Marcin Piatkowski, 2004. "Productivity, innovation and ICT in Old and New Europe," International Economics and Economic Policy, Springer, vol. 1(2), pages 215-246, January.
    3. Keith Finlay & Leandro M. Magnusson, 2009. "Implementing weak-instrument robust tests for a general class of instrumental-variables models," Stata Journal, StataCorp LP, vol. 9(3), pages 398-421, September.
    4. David M. Cutler & Ernst R. Berndt, 2001. "Introduction to "Medical Care Output and Productivity"," NBER Chapters, in: Medical Care Output and Productivity, pages 1-12, National Bureau of Economic Research, Inc.
    5. Robert Inklaar & Mary O'Mahony & Marcel Timmer, 2005. "ICT AND EUROPE's PRODUCTIVITY PERFORMANCE: INDUSTRY‐LEVEL GROWTH ACCOUNT COMPARISONS WITH THE UNITED STATES," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 51(4), pages 505-536, December.
    6. Raffaela Giordano & Pietro Tommasino, 2013. "Public-Sector Efficiency and Political Culture," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 69(3), pages 289-316, September.
    7. Diane Dawson & Hugh Gravelle & Mary O'Mahony & Andrew Street & Martin Weale & Adriana Castelli & Rowena Jacobs & Paul Kind & Pete Loveridge & Stephen Martin & Philip Stevens & Lucy Stokes, 2005. "Developing new approaches to measuring NHS outputs and productivity," Working Papers 006cherp, Centre for Health Economics, University of York, revised Dec 2005.
    8. repec:dgr:rugggd:200368 is not listed on IDEAS
    9. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119, Decembrie.
    10. Jan Kregel, 2011. "Resolving the US financial crisis: politics dominates economics in the New Political Economy," PSL Quarterly Review, Economia civile, vol. 64(256), pages 23-37.
    11. Diane Dawson & Hugh Gravelle & Mary O'Mahony & Andrew Street & Martin Weale & Adriana Castelli & Rowena Jacobs & Paul Kind & Pete Loveridge & Stephen Martin & Philip Stevens & Lucy Stokes, 2005. "Developing new approaches to measuring NHS outputs and productivity," Working Papers 006cherp, Centre for Health Economics, University of York, revised Dec 2005.
    12. Sanjeev Dewan & Kenneth L. Kraemer, 2000. "Information Technology and Productivity: Evidence from Country-Level Data," Management Science, INFORMS, vol. 46(4), pages 548-562, April.
    13. Carlo D'Ippoliti & Alessandro Roncaglia, 2011. "L'Italia: una crisi nella crisi," Moneta e Credito, Economia civile, vol. 64(255), pages 189-227.
    14. repec:dgr:rugggd:200469 is not listed on IDEAS
    15. Irene Bertschek & Ulrich Kaiser, 2004. "Productivity Effects of Organizational Change: Microeconometric Evidence," Management Science, INFORMS, vol. 50(3), pages 394-404, March.
    16. Philip Stevens & Mary O'Mahoney, 2004. "International Comparisons Of Performance In The Provision Of Public Services," Royal Economic Society Annual Conference 2004 164, Royal Economic Society.
    17. Corsi, Marcella & D'Ippoliti, Carlo, 2010. "The productivity of the public sector in OECD countries: eGovernment as driver of efficiency and efficacy," MPRA Paper 21051, University Library of Munich, Germany.
    18. Federico Lucidi & Alfred Kleinknecht, 2010. "Little innovation, many jobs: An econometric analysis of the Italian labour productivity crisis," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 34(3), pages 525-546.
    19. David M. Cutler & Ernst R. Berndt, 2001. "Medical Care Output and Productivity," NBER Books, National Bureau of Economic Research, Inc, number cutl01-1.
    20. Corsi, Marcella & D'Ippoliti, Carlo & Gumina, Andrea & Battisti, Michele, 2006. "eGEP Economic Model: Final Report on the Benefits, Costs and Financing of eGovernment," MPRA Paper 34396, University Library of Munich, Germany.
    21. Labini, Paolo Sylos, 1995. "Why the interpretation of the Cobb-Douglas production function must be radically changed," Structural Change and Economic Dynamics, Elsevier, vol. 6(4), pages 485-504, December.
    22. repec:cup:cbooks:9780521691871 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Carlo D'Ippoliti, 2013. "Introduzione: L'Unione Europea e' "mammona" (Introduction: A Pansy European Union)," Moneta e Credito, Economia civile, vol. 66(264), pages 377-395.
    2. Douglas Alencar & Frederico G. Jayme Jr & Gustavo Britto, 2021. "A post-Kaleckian model with productivity growth and real exchange rate applied to selected Latin American countries," PSL Quarterly Review, Economia civile, vol. 74(297), pages 127-146.
    3. Claudia Fontanari & Antonella Palumbo, 2023. "Permanent scars: The effects of wages on productivity," Metroeconomica, Wiley Blackwell, vol. 74(2), pages 351-389, May.
    4. Emilio Carnevali, 2021. "Price mechanism and endogenous productivity in an open economy stock‐flow consistent model," Metroeconomica, Wiley Blackwell, vol. 72(1), pages 22-56, February.
    5. Alessandro Roncaglia, 2013. "Introduction," PSL Quarterly Review, Economia civile, vol. 66(267), pages 369-370.
    6. Fontanari, Claudia, 2024. "The role of wages in triggering innovation and productivity: A dynamic exploration for European economies," Economic Modelling, Elsevier, vol. 130(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Corsi, Marcella & D'Ippoliti, Carlo & Gumina, Andrea & Battisti, Michele, 2006. "eGEP Economic Model: Final Report on the Benefits, Costs and Financing of eGovernment," MPRA Paper 34396, University Library of Munich, Germany.
    2. Andrés Maroto-Sánchez, 2010. "Productivity in the services sector: conventional and current explanations," The Service Industries Journal, Taylor & Francis Journals, vol. 32(5), pages 719-746, October.
    3. Chris Bojke & Adriana Castelli & Andrew Street & Padraic Ward & Mauro Laudicella, 2013. "Regional Variation In The Productivity Of The English National Health Service," Health Economics, John Wiley & Sons, Ltd., vol. 22(2), pages 194-211, February.
    4. Anne E. Hall, 2015. "Adjusting the Measurement of the Output of the Medical Sector for Quality: A Review of the Literature," BEA Working Papers 0122, Bureau of Economic Analysis.
    5. Paul Schreyer & Matilde Mas, 2016. "Measuring Health Services in the National Accounts: An International Perspective," NBER Chapters, in: Measuring and Modeling Health Care Costs, pages 25-52, National Bureau of Economic Research, Inc.
    6. Anastasia Arabadzhyan & Adriana Castelli & Martin Chalkley & James Gaughan & Maria Ana Matias, 2022. "Productivity of the English National Health Service: 2019/20 update," Working Papers 185cherp, Centre for Health Economics, University of York.
    7. Peter Hart, 2007. "Productivity in the National Health Service," Economics Discussion Papers em-dp2007-45, Department of Economics, University of Reading.
    8. Helen Simpson, 2009. "Productivity In Public Services," Journal of Economic Surveys, Wiley Blackwell, vol. 23(2), pages 250-276, April.
    9. Simon Eckermann & Tim Coelli, 2008. "Including quality attributes in a model of health care efficiency: A net benefit approach," CEPA Working Papers Series WP032008, School of Economics, University of Queensland, Australia.
    10. Darrel Phillip Doessel, 2009. "A Historical Perspective On Mental Health Services In Australia: 1883–84 To 2003–04," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 49(2), pages 173-197, July.
    11. Ajoy Ketan Sarangi & Rudra Prakash Pradhan, 2020. "ICT infrastructure and economic growth: a critical assessment and some policy implications," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 47(4), pages 363-383, December.
    12. Kevin J. Fox & Thomas Niebel & Mary O'Mahony & Marianne Saam, 2017. "The Contribution of Intangible Assets to Sectoral Productivity Growth in the EU," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 63, pages 49-67, February.
    13. Adriana Castelli & Peter C Smith, 2006. "Circulatory Disease in the NHS: Measuring Trends in Hospital Costs and Output," Working Papers 021cherp, Centre for Health Economics, University of York.
    14. Liao, Hailin & Wang, Bin & Li, Baibing & Weyman-Jones, Tom, 2016. "ICT as a general-purpose technology: The productivity of ICT in the United States revisited," Information Economics and Policy, Elsevier, vol. 36(C), pages 10-25.
    15. Cutler, David & McClellan, Mark, 2001. "Productivity Change in Health Care," Scholarly Articles 2640585, Harvard University Department of Economics.
    16. Vu, Khuong M & Asongu, Simplice, 2020. "Backwardness advantage and economic growth in the information age: A cross-country empirical study," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    17. Marianna Belloc & Paolo Guerrieri, 2015. "Impact of ICT diffusion and adoption on sectoral industrial performance: evidence from a panel of European countries," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 32(1), pages 67-84, April.
    18. Andrés Maroto-Sánchez, 2009. "Productivity growth and cyclical behaviour in service industries: the Spanish case," The Service Industries Journal, Taylor & Francis Journals, vol. 31(5), pages 725-745, February.
    19. Carstensen, Vivian, 2002. "The From-Tayloristic-to-Holistic-Organization Model From an Empirical Perspective," Hannover Economic Papers (HEP) dp-256, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    20. Paul J.J. Welfens, 2008. "Growth, Structural Dynamics and EU Integration in the Context of the Lisbon Agenda," EIIW Discussion paper disbei158, Universitätsbibliothek Wuppertal, University Library.

    More about this item

    Keywords

    productivity growth; public sector; e-Government;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:psl:pslqrr:2013:44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Carlo D'Ippoliti (email available below). General contact details of provider: http://www.economiacivile.it .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.