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Did New Public Management Matter? An empirical analysis of the outsourcing and decentralization effects on public sector size

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  • José M. Alonso
  • Judith Clifton
  • Daniel Díaz-Fuentes

Abstract

Did New Public Management (NPM) actually lead to a smaller public sector? NPM has been the subject of extensive academic debate as to its successes and failures. However, empirical assessments of whether NPM reached its stated objectives are relatively scarce, mainly due to the difficulty of quantifying the impact of such reforms. This article attempts to do this, focusing in particular on outsourcing and decentralization. Our findings suggest that government outsourcing did not reduce public sector size, though decentralization policies resulted in a smaller public sector, particularly with regard to government expenditure.

Suggested Citation

  • José M. Alonso & Judith Clifton & Daniel Díaz-Fuentes, 2015. "Did New Public Management Matter? An empirical analysis of the outsourcing and decentralization effects on public sector size," Public Management Review, Taylor & Francis Journals, vol. 17(5), pages 643-660, May.
    • Handle: RePEc:taf:pubmgr:v:17:y:2015:i:5:p:643-660
    DOI: 10.1080/14719037.2013.822532
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    More about this item

    JEL classification:

    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out

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