Measuring Efficiency and Effectiveness 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 the production of outcomes is 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 output mix efficiency is shown. The rather monumental task of providing the necessary information for calculating mix efficiency is highlighted.
|Date of creation:||12 Jul 2013|
|Date of revision:|
|Contact details of provider:|| Postal: Department of Economics, University of Oslo, P.O Box 1095 Blindern, N-0317 Oslo, Norway|
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- Ruggiero, John, 1996. "Efficiency of Educational Production: An Analysis of New York School Districts," The Review of Economics and Statistics, MIT Press, vol. 78(3), pages 499-509, August.
- Boaz Golany & Eran Tamir, 1995. "Evaluating Efficiency-Effectiveness-Equality Trade-Offs: A Data Envelopment Analysis Approach," Management Science, INFORMS, vol. 41(7), pages 1172-1184, July.
- Finn Førsund & Nikias Sarafoglou, 2002.
"On the Origins of Data Envelopment Analysis,"
Journal of Productivity Analysis,
Springer, vol. 17(1), pages 23-40, January.
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