Challenges in the Measurement of Public Sector Productivity in OECD Countries

Productivity is one of the main engines of economic growth. While most existing work on productivity has focused on the private sector, there is great value in better understanding productivity in the public sector, given government's important role in the provision of goods and services and it...

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Main Authors: Edwin Lau, Zsuzsanna Lonti, Rebecca Schultz
Format: Article
Language:English
Published: Centre for the Study of Living Standards 2017-04-01
Series:International Productivity Monitor
Subjects:
Online Access:http://www.csls.ca/ipm/32/lau.pdf
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author Edwin Lau
Zsuzsanna Lonti
Rebecca Schultz
author_facet Edwin Lau
Zsuzsanna Lonti
Rebecca Schultz
author_sort Edwin Lau
collection DOAJ
description Productivity is one of the main engines of economic growth. While most existing work on productivity has focused on the private sector, there is great value in better understanding productivity in the public sector, given government's important role in the provision of goods and services and its substantial contribution to overall GDP. However, the measurement of public sector productivity as a first step towards better understanding its dynamics is fraught with challenges, as the public sector differs substantially from the private sector in some of its key characteristics. This article examines current country practices and challenges to measure public sector productivity and identifies five areas to further enhance measurement efforts: (i) improvements to input measurement and cost accounting, (ii) standardization and comparability of measures, (iii) output measurement beyond the education and health sectors, (iv) a typology of activities at the micro level, and (v) intra-governmental co-ordination on productivity measurement. The article also calls for further research on the policy drivers for public sector productivity to delve deeper into how governance frameworks can be mobilized to achieve greater public sector productivity in support of effective public governance and ultimately the well-being of citizens.
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spelling doaj.art-223eebd86473461fba78d3e0a30259f92022-12-22T02:38:52ZengCentre for the Study of Living StandardsInternational Productivity Monitor1492-97591492-97672017-04-0132180195Challenges in the Measurement of Public Sector Productivity in OECD CountriesEdwin Lau0Zsuzsanna Lonti1Rebecca Schultz2OECDOECDOECDProductivity is one of the main engines of economic growth. While most existing work on productivity has focused on the private sector, there is great value in better understanding productivity in the public sector, given government's important role in the provision of goods and services and its substantial contribution to overall GDP. However, the measurement of public sector productivity as a first step towards better understanding its dynamics is fraught with challenges, as the public sector differs substantially from the private sector in some of its key characteristics. This article examines current country practices and challenges to measure public sector productivity and identifies five areas to further enhance measurement efforts: (i) improvements to input measurement and cost accounting, (ii) standardization and comparability of measures, (iii) output measurement beyond the education and health sectors, (iv) a typology of activities at the micro level, and (v) intra-governmental co-ordination on productivity measurement. The article also calls for further research on the policy drivers for public sector productivity to delve deeper into how governance frameworks can be mobilized to achieve greater public sector productivity in support of effective public governance and ultimately the well-being of citizens.http://www.csls.ca/ipm/32/lau.pdfeconomic productivitymeasurement issuesoecdpublic sector productivitygdp
spellingShingle Edwin Lau
Zsuzsanna Lonti
Rebecca Schultz
Challenges in the Measurement of Public Sector Productivity in OECD Countries
International Productivity Monitor
economic productivity
measurement issues
oecd
public sector productivity
gdp
title Challenges in the Measurement of Public Sector Productivity in OECD Countries
title_full Challenges in the Measurement of Public Sector Productivity in OECD Countries
title_fullStr Challenges in the Measurement of Public Sector Productivity in OECD Countries
title_full_unstemmed Challenges in the Measurement of Public Sector Productivity in OECD Countries
title_short Challenges in the Measurement of Public Sector Productivity in OECD Countries
title_sort challenges in the measurement of public sector productivity in oecd countries
topic economic productivity
measurement issues
oecd
public sector productivity
gdp
url http://www.csls.ca/ipm/32/lau.pdf
work_keys_str_mv AT edwinlau challengesinthemeasurementofpublicsectorproductivityinoecdcountries
AT zsuzsannalonti challengesinthemeasurementofpublicsectorproductivityinoecdcountries
AT rebeccaschultz challengesinthemeasurementofpublicsectorproductivityinoecdcountries