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Efficiency of Public Sector Organizations: Perspectives from Theories of Bureaucracy

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  • Erkoc, Taptuk Emre

Abstract

Economic insights on the provision of public goods and services by public sector organizations went hand in hand with probing questions on the efficient allocation of resources within them concerning neo-classical assumptions on the theory of firm (Coase, 1937; Alchian and Demsetz, 1972). The rationale behind the unprecedented divergences from the neo-classical firm postulations on the basis of not-to-operate at the efficient production frontier has attracted attentions of researchers working not only on the private firms but also on the public sector. This paper investigates theoretical underpinnings of efficient allocation of resources within public sector organizations on the basis of a variety of arguments. Before examining the (in) efficient usage of resources in the public sector that is mostly based on the theory of bureaucracy, methodological and practical challenges to measure the efficiency performances of public intuitions are visited. Subsequently, institutional framework on the public provision of goods and services is scrutinised referring particularly to the discussion on incentive schemes and efficiency.

Suggested Citation

  • Erkoc, Taptuk Emre, 2013. "Efficiency of Public Sector Organizations: Perspectives from Theories of Bureaucracy," MPRA Paper 49386, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:49386
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    File URL: https://mpra.ub.uni-muenchen.de/49386/1/MPRA_paper_49386.pdf
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    References listed on IDEAS

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    Cited by:

    1. Olawale Odewole, Philip & Oyesola Salawu, Rafiu, 2021. "Assessment Of The Efficiency Of Selected Public Sector Entities In Nigeria," Ilorin Journal of Economic Policy, Department of Economics, University of Ilorin, vol. 8(1), pages 18-30, June.
    2. Fatih KARASAÇ, 2020. "Efficiency Analysis of Turkish Higher Education Institutions: Stochastic Frontier Model," Sosyoekonomi Journal, Sosyoekonomi Society.

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    More about this item

    Keywords

    Efficiency; Government Output; Public Sector Organizations; Bureaucracy;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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