Inter-Sectoral Cost Comparisons: An Application of the Cost Function Technique

Abstract

One important characteristic of the search for ‘value for money’ or efficiency in social care has been a more purposive consideration of the contribution to be made by the private and voluntary sectors. Despite the tremendous recent impetus given to ‘privatisation’ in social care and in many other areas, there is actually very little evidence on the relative merits of the different sectors. In this chapter the technique of cost function analysis will be used to examine the cost differential between public, voluntary and private care services.