The effect of public sector efficiency on firm-level productivity growth (original) (raw)
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In the last decades, one of the most characteristic features in the developed economies has been the growing role of government. In this study, we focus on the Great Moderation period of the OECD countries. Targeting a more subtle approach to the role of the modern state, we shall here analyse not only the size of governmental expenditures, but also the performance and efficiency achieved. Taking the findings of the professional literature into account, we divided the developed countries into five groups, four from Europe, plus the overseas OECD countries. We shall examine what is the optimal size of the public sector for these groups from the point of view of economic growth and compare these results with the real figures.
The Productivity of the Public Sector: A Classical View
icape.org
We define public administrations (PAs) as productive units and analyze the recent trends in PAs' productivity. We apply Sylos Labini's productivity function, i.e. a Classical-type model of the determinants of growth at both micro and macro levels. Such a framework is useful as a reference growth model that does not rely upon "marginalist" hypotheses (especially concerning the aggregate production function), and it is specifically well suited to capture the relevance of innovation processes.
2010
This article aims at illustrating a theoretical approach to the analysis of the dynamics of productivity in the public sector, and at presenting a preliminary application of it to the estimation of the impact on productivity of the recent development of e-Government processes in a number of OECD countries. 1 Our analysis serves a twofold purpose: at the microeconomic level, we set out to provide individual public administrations (PAs) with an instrument to evaluate the benefits, in terms of output, of alternative projects, particularly through a more efficient organisation of the relevant information. At the macroeconomic level, the aim is to highlight a significant relationship between e-Government and economic growth, as an indicator of social wellbeing.
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In this paper we seek a robust methodology to measure the relative public spending efficiency of 19 OECD countries over the period 1980-2000. Based on the functional classification of government expenditure, we decompose total public spending into its separate accounts and we employ a semi-parametric method to obtain relative efficiency scores (for the separate accounts as well as for aggregate public spending). The econometric method isolates the impact of government inefficiency from the inefficiency arising from the socioeconomic environment or luck, thus leveling the playing field between the examined countries. The results suggest that the quality of governance is more important than the socioeconomic environment or luck. Finally, we propose a technique to measure the allocative efficiency of public spending, in an effort to proxy the optimal allocation of public funds when the governments set specific targets.
Public and private inputs in aggregate production and growth: a cross-country efficiency approach
Applied Economics, 2013
In a cross section of OECD countries we replace the macroeconomic production function by a production possibility frontier, TFP being the composite effect of efficiency scores and possibility frontier changes. We consider, for the periods 1970, 1980, 1990, 2000, one output: GDP per worker; three inputs: human capital, public physical capital per worker and private physical capital per worker. We use a semiparametric analysis, computing Malmquist productivity indexes, and we also resort to stochastic frontier analysis. Results show that private capital is important for growth, although public and human capital also contribute positively. A governance indicator, a non-discretionary input, explains inefficiency. Better governance helps countries to achieve a better performance. Non-parametric and parametric results coincide rather closely on the countries movements vis-à-vis the possibility frontier, and on their relative distances to the frontier. JEL: C14, D24, H50, O47
Comparing Labour Productivity Growth in the OECD Area
OECD Science, Technology and Industry Working Papers, 2003
Document complet disponible sur OLIS dans son format d'origine Complete document available on OLIS in its original format STD/DOC(2003)5 Unclassified English-Or. English STD/DOC(2003)5 2 OECD STATISTICS WORKING PAPER SERIES The OECD Statistics Working Paper Series-managed by the OECD Statistics Directorate-is designed to make available in a timely fashion and to a wider readership selected studies prepared by staff in the Secretariat or by outside consultants working on OECD projects. The papers included are of a technical, methodological or statistical policy nature and relate to statistical work relevant to the organisation. The Working Papers are generally available only in their original language-English or French-with a summary in the other.
2015
RESUMÉ ................................................................................................................................... 2 FRONTIER FIRMS, TECHNOLOGY DIFFUSION AND PUBLIC POLICY: MICRO EVIDENCE FROM OECD COUNTRIES .......................................................................................................................... 5
Public sector efficiency: An international comparison
Public Choice, 2005
We compute public sector performance (PSP) and public sector efficiency (PSE) indicators, comprising a composite and seven sub-indicators, for 23 industrialised countries. The first four sub-indicators are "opportunity" indicators that take into account administrative, education and health outcomes and the quality of public infrastructure and that support the rule of law and a level playing-field in a market economy. Three other indicators reflect the standard "Musgravian" tasks for government: allocation, distribution and stabilisation. The input and output efficiency of public sectors across countries is then measured via a non-parametric production frontier technique. The study finds significant differences in PSP and PSE, which suggests a large potential for expenditure savings in many countries. JEL Classification Numbers: C14, H50.