IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/19018.html
   My bibliography  Save this paper

The Impact of Reducing the Administrative Costs on the Efficiency in the Public Sector

Author

Listed:
  • Matei, Ani
  • Savulescu, Carmen

Abstract

The goal of the paper is to evaluate the impact of reducing the administrative costs on the efficiency in the public sector. Within the general framework provided by the specialised literature, the proposed methodology uses the classical model of a function of production, thus describing the factors of influence of the administrative costs on production and productivity in the public sector. The theoretical results are empirical exemplified for a local service of public utility. Adapting the theoretical model to the empirical situation is grounded on statistic methods of analysis and regression. The interpretation of results inscribes in the economic framework specific for public economics. The results aim both the novel model of analysis and the concrete evaluation of the economic impact of reducing the administrative expenditure in the public sector. At the same time, the general topic of reducing the administrative costs is extended towards the public sector. The most relevant conclusion refers to the capacity of the classical economic models in developing the public sector

Suggested Citation

  • 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.
  • Handle: RePEc:pra:mprapa:19018
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/19018/1/MPRA_paper_19018.pdf
    File Function: original version
    Download Restriction: no

    References listed on IDEAS

    as
    1. Ani Matei & Lucica Matei, 2007. "Systemic Models of Local Development," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 1(1(506)), pages 11-24, January.
    2. James E. Payne & Bradley T. Ewing & Hassan Mohammadi, 2006. "Wagner’s Hypothesis: New Evidence from the US Using the Bounds Testing Approach," Chapters, in: Attiat F. Ott & Richard J. Cebula (ed.), The Elgar Companion to Public Economics, chapter 4, Edward Elgar Publishing.
    3. Matei, Ani, 2007. "Empirical Approaches About the Input-Output Model for the Local Economic Development: Case Study in Braila Municipality," MPRA Paper 18907, University Library of Munich, Germany, revised 10 Aug 2009.
    4. Antonio Afonso & Ludger Schuknecht & Vito Tanzi, 2010. "Public sector efficiency: evidence for new EU member states and emerging markets," Applied Economics, Taylor & Francis Journals, vol. 42(17), pages 2147-2164.
    5. António Afonso & Ludger Schuknecht & Vito Tanzi, 2005. "Public sector efficiency: An international comparison," Public Choice, Springer, vol. 123(3), pages 321-347, June.
    6. 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.
    7. International Monetary Fund, 1998. "Public Sector Efficiency and Fiscal Austerity," IMF Working Papers 1998/056, International Monetary Fund.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Matei, Ani & Savulescu, Carmen, 2009. "Enhancing the efficiency of local government in the context of reducing the administrative expenditures," MPRA Paper 17640, University Library of Munich, Germany.
    2. World Bank, 2015. "Central America Social Expenditures and Institutional Review," World Bank Other Operational Studies 22672, The World Bank.
    3. António Afonso & Ludger Schuknecht & Vito Tanzi, 2020. "The Size of Government," EconPol Working Paper 46, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    4. Christl, Michael & Köppl-Turyna, Monika & Kucsera, Dénes, 2018. "Public sector efficiency in Europe: Long-run trends, recent developments and determinants," Working Papers 14, Agenda Austria.
    5. Gaspar, Ví­tor & Afonso, António, 2006. "Excess burden and the cost of inefficiency in public services provision," Working Paper Series 601, European Central Bank.
    6. Philippe K. Widmer & Peter Zweifel, 2008. "Public Good Provision in a Federalist Country: Tiebout Competition, Fiscal Equalization, and Incentives for Efficiency in Switzerland," SOI - Working Papers 0804, Socioeconomic Institute - University of Zurich, revised Dec 2010.
    7. António Afonso & Ana Venâncio, 2020. "Local territorial reform and regional spending efficiency," Local Government Studies, Taylor & Francis Journals, vol. 46(6), pages 888-910, November.
    8. Tumaniants, Karen A. (Туманянц, Карэн) & Sesina, Julia E. (Сесина, Юлия), 2017. "Social Expenditures of Russian Regions in Terms of “Input-Output” [Расходы На Социальную Политику Российских Регионов В Координатах «Затраты — Результат»]," Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 5, pages 128-149, October.
    9. Pierre Pestieau, 2009. "Assessing The Performance Of The Public Sector," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 80(1), pages 133-161, March.
    10. Eugeniusz Wojciechowski & Aldona Podgórniak-Krzykacz, 2008. "Pomiar jakości rządzenia," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 19-38.
    11. Martin Heipertz & Melanie Ward-Warmedinger, 2008. "Economic and Social Models in Europe and the Importance of Reform," Financial Theory and Practice, Institute of Public Finance, vol. 32(3), pages 255-287.
    12. Djedje Hermann YOHOU, 2015. "In Search of Fiscal Space in Africa: The Role of the Quality of Government Spending," Working Papers 201527, CERDI.
    13. Konstantinos Angelopoulos & Apostolis Philippopoulos & Efthymios Tsionas, 2008. "Does public sector efficiency matter? Revisiting the relation between fiscal size and economic growth in a world sample," Public Choice, Springer, vol. 137(1), pages 245-278, October.
    14. Antonis Adam & Manthos Delis & Pantelis Kammas, 2011. "Public sector efficiency: leveling the playing field between OECD countries," Public Choice, Springer, vol. 146(1), pages 163-183, January.
    15. Olanubi, Sijuola Orioye & Osode, Oluwanbepelumi Esther & Adegboye, Abiodun Adewale, 2020. "Public sector efficiency in the design of a euro-area social benefit scheme," Journal of Policy Modeling, Elsevier, vol. 42(3), pages 615-627.
    16. Vratislav Izák, 2011. "The Welfare State and Economic Growth," Prague Economic Papers, Prague University of Economics and Business, vol. 2011(4), pages 291-308.
    17. Simanti Bandyopadhyay, 2012. "Performance Evaluation of Urban Local Governments: A Case for Indian Cities," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1232, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    18. Antonis Adam & Manthos Delis & Pantelis Kammas, 2014. "Fiscal decentralization and public sector efficiency: evidence from OECD countries," Economics of Governance, Springer, vol. 15(1), pages 17-49, February.
    19. Krasnopjorovs, Olegs, 2013. "Latvijas ekonomikas izaugsmi noteicošie faktori [Factors of Economic Growth in Latvia]," MPRA Paper 47550, University Library of Munich, Germany.
    20. António Afonso & Ludger Schuknecht, 2019. "How “Big” Should Government Be?," Working Papers REM 2019/78, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.

    More about this item

    Keywords

    administrative costs; efficiency; productivity; public sector;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H59 - Public Economics - - National Government Expenditures and Related Policies - - - Other

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:19018. 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: (Joachim Winter). General contact details of provider: http://edirc.repec.org/data/vfmunde.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.