Measuring Efficiency in the Public Sector
The distinction between the concepts outputs and outcomes can be made operational based on the consideration of the degree of control a public service producer has over its production activity. Resources are transformed into service outputs under the control of the organisation in question, while outcomes represent some higher social goals than outputs and are determined by the outputs and other exogenous variables, but these will usually be outside the control of the organisation. The link to the calculation of savings potentials and efficiency measurement is provided based on introducing the concept of a benchmark frontier technology for the type of production in question. A new measure of overall preference efficiency is introduced and its decomposition into output-oriented technical efficiency and mix efficiency is shown. The rather monumental task of providing the necessary information for calculating mix efficiency is highlighted.
|Date of creation:||13 Mar 2012|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 22 85 51 27
Fax: 22 85 50 35
Web page: http://www.oekonomi.uio.no/indexe.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Finn Førsund & Nikias Sarafoglou, 2002.
"On the Origins of Data Envelopment Analysis,"
Journal of Productivity Analysis,
Springer, vol. 17(1), pages 23-40, January.
- Peter Bogetoft & Jens Hougaard, 2003.
Journal of Productivity Analysis,
Springer, vol. 20(3), pages 243-271, November.
- Aigner, Dennis & Lovell, C. A. Knox & Schmidt, Peter, 1977. "Formulation and estimation of stochastic frontier production function models," Journal of Econometrics, Elsevier, vol. 6(1), pages 21-37, July.
- Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
- Haskel, Jonathan & Sanchis, Amparo, 1995.
"Privatisation and X-Inefficiency: A Bargaining Approach,"
Journal of Industrial Economics,
Wiley Blackwell, vol. 43(3), pages 301-21, September.
- Haskel, Jonathan & Sanchis, Amparo, 1995. "Privatization and X-Inefficiency: A Bargaining Approach," CEPR Discussion Papers 1192, C.E.P.R. Discussion Papers.
- Diewert, Erwin, 2010.
"Measuring Productivity in the Public Sector: Some Conceptual Problems,"
Economics working papers
erwin_diewert-2010-6, Vancouver School of Economics, revised 13 Jul 2010.
- W. Diewert, 2011. "Measuring productivity in the public sector: some conceptual problems," Journal of Productivity Analysis, Springer, vol. 36(2), pages 177-191, October.
- Hanoch, Giora, 1970. "Homotheticity in joint production," Journal of Economic Theory, Elsevier, vol. 2(4), pages 423-426, December.
When requesting a correction, please mention this item's handle: RePEc:hhs:osloec:2012_009. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rhiana Bergh-Seeley)
If references are entirely missing, you can add them using this form.