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The size and performance of public sector activities in Europe

Author

Listed:
  • Heinz Handler

    (Austrian Institute of Economic Research)

  • Bertrand Koebel

    (University of Strasbourg)

  • Philipp Reiss

    (University of Madgeburg)

  • Margit Schratzenstaller

    (Austrian Institute of Economic Research)

Abstract

The obvious difference in the economic performance of countries has led to the question why some countries are so much wealthier than others, and whether the size, the structure, and the organisation of the public sector contribute to cross-country income and growth gaps. Public sector activities may have an effect on overall productivity and growth either directly by the level and changes of productivity within the public sector, or indirectly by triggering off productivity changes in private production. This paper is concerned with the former aspect. It provides an overview of the size and the structure of the public sector in Europe and compares it with the US and Japan. This is related to the more recent empirical literature on public sector performance. After reviewing some of the measurement issues related to public services, the evidence on the size of government and its performance is analysed. The results on industrial countries are not fully conclusive, but seem to attribute more efficiency to smaller rather than to larger governments. Public sector reforms to consolidate the size of government are therefore likely to enhance the sector's own productivity and thereby positively contribute to overall economic performance.

Suggested Citation

  • Heinz Handler & Bertrand Koebel & Philipp Reiss & Margit Schratzenstaller, 2005. "The size and performance of public sector activities in Europe," Public Economics 0507011, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwppe:0507011
    Note: Type of Document - pdf; pages: 28
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    References listed on IDEAS

    as
    1. Heinz Handler & Andreas Knabe & Bertrand Koebel & Margit Schratzenstaller & Sven Wehke, 2005. "The Impact of Public Budgets on Overall Productivity Growth," WIFO Working Papers 255, WIFO.
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    Cited by:

    1. Heinz Handler & Andreas Knabe & Bertrand Koebel & Margit Schratzenstaller & Sven Wehke, 2005. "The Impact of Public Budgets on Overall Productivity Growth," WIFO Working Papers 255, WIFO.
    2. 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.
    3. Aurelio Bruzzo, 2016. "Theoretical references for the territorial delimitation of Regions," Argomenti, University of Urbino Carlo Bo, Department of Economics, Society & Politics, vol. 3(3), pages 1-26, January-A.
    4. Faridah Djellal & Faïz Gallouj, 2011. "Beyond Productivity Measurement and Strategies: Performance Evaluation and Strategies in Services," Post-Print halshs-01113986, HAL.
    5. Steven Van de Walle, 2009. "International Comparisons of Public Sector Performance," Public Management Review, Taylor & Francis Journals, vol. 11(1), pages 39-56, January.
    6. Ad van Riet & Moreno Roma, 2006. "Competition, productivity and prices in the euro area services sector," Occasional Paper Series 44, European Central Bank.
    7. Faridah Djellal & Faïz Gallouj, 2007. "Les services publics à l'épreuve de la productivité et la productivité à l'épreuve des services publics," Revue d'économie industrielle, De Boeck Université, vol. 0(3), pages 2-2.
    8. Onofrei, Mihaela & Lupu, Dan, 2010. "The dimension of public administration in Central and Eastern European countries in the current financial crisis," MPRA Paper 95513, University Library of Munich, Germany.
    9. Hada Teodor & Iuga Iulia & Mihai Carut, 2018. "The Accountancy Of Revenues And Expenditures In The Romanian Mayor’S Halls," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 115-129, August.
    10. Sotiris Theodoropoulos, 2012. "Seeking a sustainable size and structure for the Greek public sector’s activities according to the fiscal pact for Euro," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 62(3-4), pages 75-92, July - De.
    11. Heinz Handler & Margit Schratzenstaller, 2006. "Teilstudie 7: Die Rolle des Staates," WIFO Studies, WIFO, number 27446, April.
    12. Faridah Djellal & Faïz Gallouj, 2013. "The productivity challenge in services: measurement and strategic perspectives," The Service Industries Journal, Taylor & Francis Journals, vol. 33(3-4), pages 282-299, February.
    13. Matt Andrews, 2008. "The Good Governance Agenda: Beyond Indicators without Theory," Oxford Development Studies, Taylor & Francis Journals, vol. 36(4), pages 379-407.

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    More about this item

    Keywords

    public sector size; performance of public sector;

    JEL classification:

    • D6 - Microeconomics - - Welfare Economics
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H - Public Economics

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