Public Sector Productivity


Productivity is defined as the ratio of outputs to inputs. When applied to the public sector, productivity becomes a key performance indicator that shows how efficiently public resources are employed in providing public services. Until not too long ago productivity in the public sector was assumed to be flat as outputs were given the same price as the cost of producing them. Recent methodological approaches suggest to measure outputs directly in order to count with realistic productivity estimates. Empirical public sector productivity studies are still in its infancy.

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