Steering of the public sector economy

Even when a decision has been made about what the public sector should deliver, there is a need for knowledge about how the public sector's economy can be managed in the best possible way so that maximum benefit from the public sector activities is achieved, i.e. efficient use of the scarce resources. This requires first of all knowledge of management methods and management paths, as well as expertise of how to get the best possible data and make decisions based upon existing evidence. Emphasis is placed on being able to explain possible reasons for inefficient production, as well as methods for obtaining the best possible knowledge as a background for decisions and possible ways to influence citizens' behaviour, for example, through nudging. This presentation includes the theoretical understanding of the principal–agent relationship, how to make the most effective choices, as well as briefly at how behavioural economics not only can be used internally in the public sector, but also at how it can be a way of influencing citizens' behaviour.