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Improvement of Government Financing through Non-Conventional Methods: Reducing the Administrative Costs in the Public Sector


  • Matei, Ani
  • Dinu, Teodora


The paper aims to emphasize the relative recent preoccupations of several European states and even of EU about reducing the administrative costs and contribution of this process to local and national development, increasing the GDP etc. Recent appreciations of the European officials reveal estimations that a reduction by 25% of the administrative costs could lead to an increase of GDP by 2-3%. Mechanisms of coordination for national policies are already operational even if their results are not yet visible. Oriented mainly towards the private sector, the issue of reducing the administrative costs remains up-to-date also in the public sector. Moreover, even in the context of the current economic crisis, the reduction of the administrative costs represents an important resource for financing the development of the public sector at local level and the macro-economic policies. Therefore, in this context, the paper comprises: -Synthetic and comparative analyses about the content and results of the national policies for reducing the administrative costs. -Considerations concerning the enlargement of the mentioned policies on the economic and social processes specific for the public sector. -Models to evaluate the impact of reducing the administrative costs on financing the public sector, based on input-output analysis materialised through the production function. -Emphasizing the effects on long term of reducing the administrative costs and substantiating the policies for financing national or local governance

Suggested Citation

  • Matei, Ani & Dinu, Teodora, 2009. "Improvement of Government Financing through Non-Conventional Methods: Reducing the Administrative Costs in the Public Sector," MPRA Paper 18905, University Library of Munich, Germany, revised 17 Jun 2009.
  • Handle: RePEc:pra:mprapa:18905

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    References listed on IDEAS

    1. Ani Matei & Lucica Matei & Teodora Dinu, 2009. "Marketing of Local Public Services under the Reduction of Administrative Expenditures," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 3(03(532)), pages 07-28, March.
    2. Gilles Mourre, 2009. "Underutilisation of Labour in (Continental Western) Europe: A Detailed GDP Accounting Perspective," Working Papers CEB 09-050.RS, ULB -- Universite Libre de Bruxelles.
    3. George Gelauff & Arjan Lejour, 2006. "Five Lisbon highlights; the economic impact of reaching these targets," CPB Document 104, CPB Netherlands Bureau for Economic Policy Analysis.
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    Cited by:

    1. Matei, Ani & Savulescu, Carmen, 2009. "The Impact of Reducing the Administrative Costs on the Efficiency in the Public Sector," MPRA Paper 19018, University Library of Munich, Germany, revised 15 Nov 2009.

    More about this item


    administrative costs; EU policies and programs; public sector;

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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