Regardless of where we live, the management of the public sector impacts on our lives. Hence, we all have an interest, one way or another, in the achievement of efficiency and productivity improvements in the activities of the public sector. While the scope of the public sector varies across countries, there are common themes when considering its performance. The management of expenditure, revenue, wealth (including natural resources), allocation issues, regulation, and the quality of services is as of much importance in the public sector as in any private company. There seems to be a commonly held view in many countries that these management concerns are not taken as seriously in the public sector as in the private sector. This perception probably arises partly due to the fact that it is often more difficult for public agencies to measure their performance in achieving management goals that are common in the private sector. How should a hospital, a police force, or a government department measure its output? How should efficiency in raising revenue by the government be measured? How should the efficient allocation of scarce resources between activities be managed when it is difficult to measure the relative performance of different agencies? How should the wealth of a country, its (variable and fixed) natural resources, be efficiently managed?
KeywordsPublic Sector Data Envelopment Analysis Production Frontier Consumer Satisfaction Stochastic Frontier Analysis
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