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Public Sector Contribution To Competitiveness

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  • Vincenzo Patrizii
  • Giuliano Resce

Abstract

Conventional measures of competitiveness in terms of final prices shed little light on how those measures are affected by public expenditure. By taking productivity as a common factor to any index of competitiveness we propose to assess the Italian Public Sector contribution by its productivity in providing public services. Integration of Data Envelopment Analysis with Principal Component Analysis provides a consistent methodology to face the problem of high dimensions, which is a characterising feature of public services provision. Results show a large geographical variability in Public Sector productivity and a significant differentiation in terms of both layers of government and types of services. Thus offering evidence to identify areas, services and tiers of government lacking efficiency and constituting a potential obstacle for growth. A East–West divide emerges on top of the Country’s traditional, though less marked than commonly thought, North–South divide. Copyright Società Italiana degli Economisti (Italian Economic Association) 2015

Suggested Citation

  • Vincenzo Patrizii & Giuliano Resce, 2015. "Public Sector Contribution To Competitiveness," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 1(3), pages 401-443, November.
    • Handle: RePEc:spr:italej:v:1:y:2015:i:3:p:401-443
    DOI: 10.1007/s40797-015-0017-4
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    Cited by:

    1. Bucciol, Alessandro & Burro, Giovanni, 2022. "Is there a happiness premium for working in the public sector? Evidence from Italy," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 97(C).
    2. bucci, valeria & ferrara, giancarlo & resce, giuliano, 2022. "Fiscal decentralization and efficiency: empirical evidence from Italian municipalities," MPRA Paper 111515, University Library of Munich, Germany.
    3. De Matteis, Domenico & Ishizaka, Alessio & Resce, Giuliano, 2019. "The ‘postcode lottery’ of the Italian public health bill analysed with the hierarchy Stochastic Multiobjective Acceptability Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    4. Raffaele Lagravinese & Paolo Liberati & Giuliano Resce, 2017. "Exploring health outcomes by stochastic multi-objective acceptability analysis: an application to Italian regions," Working Papers. Collection B: Regional and sectoral economics 1703, Universidade de Vigo, GEN - Governance and Economics research Network.
    5. Atella, Vincenzo & Braione, Manuela & Ferrara, Giancarlo & Resce, Giuliano, 2023. "Cohesion Policy Funds and local government autonomy: Evidence from Italian municipalities," Socio-Economic Planning Sciences, Elsevier, vol. 87(PB).
    6. Lagravinese, Raffaele & Liberati, Paolo & Resce, Giuliano, 2019. "Exploring health outcomes by stochastic multicriteria acceptability analysis: An application to Italian regions," European Journal of Operational Research, Elsevier, vol. 274(3), pages 1168-1179.

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    More about this item

    Keywords

    Public sector productivity; Data envelopment analysis ; Principal component analysis; C61; D24; H11; H72; H75;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare

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