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Guide to the Measurement of Government Productivity

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  • Andrew Hughes

Abstract

The measurement of government productivity poses a challenge for economists. The lack of a marketed output and the multidimensional nature of objectives for government agencies in particular make the measurement of productivity in government more difficult than in the business sector. This article by Andrew Hughes of the New South Wales Treasury in Australia provides a guide to the issue of productivity measurement in government. Hughes provides a non-technical overview of the different quantitative techniques that can be used to gauge government performance, including index number techniques such as partial factor productivity and total factor productivity; statistical techniques such as ordinary least squares and stochastic frontier analysis; and mathematical techniques such as data development analysis. He gives a number of examples to illustrate the use of these techniques. Hughes concludes that general government agencies have much to gain from the application of quantitative techniques to the measurement of their economic performance.

Suggested Citation

  • Andrew Hughes, 2002. "Guide to the Measurement of Government Productivity," International Productivity Monitor, Centre for the Study of Living Standards, vol. 5, pages 64-77, Fall.
    • Handle: RePEc:sls:ipmsls:v:5:y:2002:5
    as

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    File URL: http://www.csls.ca/ipm/5/hughes-e.pdf
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    File URL: http://www.csls.ca/ipm/5/hughes-f.pdf
    File Function: version en francais, pp:70-84
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    References listed on IDEAS

    as
    1. Fried, Harold O. & Lovell, C. A. Knox & Schmidt, Shelton S. (ed.), 1993. "The Measurement of Productive Efficiency: Techniques and Applications," OUP Catalogue, Oxford University Press, number 9780195072181.
    2. Caves, Douglas W & Christensen, Laurits R & Diewert, W Erwin, 1982. "The Economic Theory of Index Numbers and the Measurement of Input, Output, and Productivity," Econometrica, Econometric Society, vol. 50(6), pages 1393-1414, November.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Andrés Felipe SALAZAR CUELLAR, 2014. "The Efficiency of Education Expenditure in Latin America and Lessons for Colombia," Archivos de Economía 11209, Departamento Nacional de Planeación.
    2. Lilia Yotova & Kristina Stefanova, 2017. "Efficiency of Tertiary Education Expenditure in CEE Countries: Data Envelopment Analysis," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 3, pages 352-364, September.
    3. Barbara M. Fraumeni & Marshall B. Reinsdorf & Brooks B. Robinson & Matthew P. Williams, 2009. "Price and Real Output Measures for the Education Function of Government: Exploratory Estimates for Primary and Secondary Education," NBER Chapters, in: Price Index Concepts and Measurement, pages 373-403, National Bureau of Economic Research, Inc.
    4. Barbara M. Fraumeni & Marshall B. Reinsdorf & Brooks B. Robinson & Matthew P. Williams, 2008. "Price and Real Output Measures for the Education Function of Government: Exploratory Estimates for Primary & Secondary Education," NBER Working Papers 14099, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Government; Measurement; Measurement of Government; Output Measurement; Output; Government Productivity; Services Measurement; Productivity Growth; Government Efficiency; Efficiency; Government Performance; Performance Monitoring; Unpriced Output; Non-Market; Price;
    All these keywords.

    JEL classification:

    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production

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