How costly are the public sector ine¢ ciencies? An integrated framework for its assessment
- Onrubia Fernández, Jorge
- Sánchez Fuentes, Antonio Jesús
Publisher: Universidad de Santiago de Compostela
ISBN: 978-84-695-1574-7
Year of publication: 2012
Pages: 58
Congress: Encuentro de Economía Pública (19. 2012. Santiago de Compostela)
Type: Conference paper
Abstract
This paper provides a theoretical framework which integrate the conventional methodology for measuring the productive e¢ ciency and the monetary assessment of social welfare changes associated with public sector performance. Two equivalent measures of social welfare changes generated by an improvement (or worsening) in productive e¢ ciency are deduced using duality theory. The .rst one is obtained from the cost function, while the second one arises directly from the production function. Moreover, the paper induces the application of the theoretical framework proposed to empirical analysis.