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Incentives, choice and accountability in the provision of public services

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  • Tim Besley

    (Institute for Fiscal Studies and London School of Economics)

  • Maitreesh Ghatak (only on Friday's pm)

    (Institute for Fiscal Studies and London School of Economics & Political Science)

Abstract

This paper discusses a theoretical framework to study the issues of competition and incentives without relying on the standard profit-oriented market model in the context of the debates about public service reform in the UK. It uses the idea that the production of public services coheres around a mission, and discusses how decentralized service provision can raise productivity by matching motivated workers to their preferred missions. Our focus on competition and incentives cuts across traditional debates about public versus private ownership and allows for the possibility of involving private non-profits. We also address concerns about the consequences of allowing more flexibility in mission design and competition on inequality.

Suggested Citation

  • Tim Besley & Maitreesh Ghatak (only on Friday's pm), 2003. "Incentives, choice and accountability in the provision of public services," IFS Working Papers W03/08, Institute for Fiscal Studies.
    • Handle: RePEc:ifs:ifsewp:03/08
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    References listed on IDEAS

    as
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    JEL classification:

    • F3 - International Economics - - International Finance
    • G3 - Financial Economics - - Corporate Finance and Governance

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