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Productivity in Public Services

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  • Helen Simpson

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Abstract

This paper discusses issues arising in the measurement of productivity in public services. Compared to measuring productivity in the private sector difficulties arise because the output of public services is often un-priced and because some public services are consumed collectively. A key problem is measuring the full range of outputs and quality improvements delivered by public sector organisations that are valued by society. Without comprehensive measures of output productivity statistics may be misleading. I outline methods used in the measurement of both private and public sector productivity and discuss the measurement of public sector productivity in practice. Finally I discuss studies that examine factors underlying productivity differences and productivity growth in public and private sector organisations. Public sector reforms and the use of pilot schemes in public sector organisations present opportunities for research to identify causal effects on productivity.

Suggested Citation

  • Helen Simpson, 2007. "Productivity in Public Services," The Centre for Market and Public Organisation 07/164, Department of Economics, University of Bristol, UK.
  • Handle: RePEc:bri:cmpowp:07/164
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    File URL: http://www.bris.ac.uk/Depts/CMPO/workingpapers/wp164.pdf
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    Cited by:

    1. Sharon Hadad & Yossi Hadad & Tzahit Simon-Tuval, 2013. "Determinants of healthcare system’s efficiency in OECD countries," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 14(2), pages 253-265, April.
    2. Chatterji, Monojit & Mumford, Karen A. & Smith, Peter N., 2007. "The Public-Private Sector Gender Wage Differential: Evidence from Matched Employee-Workplace Data," IZA Discussion Papers 3158, Institute for the Study of Labor (IZA).
    3. Monojit Chatterji & Karen Mumford & Peter N Smith, 2007. "The Public-Private Sector Wage Differential: Gender, Workplaces and Family Friendliness," Dundee Discussion Papers in Economics 202, Economic Studies, University of Dundee.
    4. David Sondermann, 2014. "Productivity in the euro area: any evidence of convergence?," Empirical Economics, Springer, vol. 47(3), pages 999-1027, November.
    5. Paolo Cosseddu & Maria Cozzolino & Ernesto Lorenzo Felli, 2012. "Structural Reform And Efficiency In Public Administration: Measuring The "Productvity Gap"," Working Papers 0812, CREI Università degli Studi Roma Tre, revised 2012.
    6. Finn Førsund & Dag Edvardsen & Sverre Kittelsen, 2015. "Productivity of tax offices in Norway," Journal of Productivity Analysis, Springer, pages 269-279.
    7. Heshmati, Almas, 2012. "Survey of Models on Demand, Customer Base-Line and Demand Response and Their Relationships in the Power Market," IZA Discussion Papers 6637, Institute for the Study of Labor (IZA).
    8. Marius Constantin PROFIROIU & Septimiu Rares SZABO, 2016. "Outsourcing vs decentralisation: A comparative analysis in Central and Eastern Europe," Eco-Economics Review, Ecological University of Bucharest, Economics Faculty and Ecology and Environmental Protection Faculty, pages 3-26.
    9. Seri, Paolo & Zanfei, Antonello, 2013. "The co-evolution of ICT, skills and organization in public administrations: Evidence from new European country-level data," Structural Change and Economic Dynamics, Elsevier, vol. 27(C), pages 160-176.

    More about this item

    Keywords

    Productivity; Public enterprises;

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • H4 - Public Economics - - Publicly Provided Goods
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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