Measuring efficiency in the public sector

Peter Smith and David Mayston ()

Omega, 1987, vol. 15, issue 3, 181-189

Abstract: One method of pursuing efficiency in the public sector has been the publication of performance indicators for individual agencies. It is often unclear how these indicators should be interpreted in isolation. This paper uses data envelopment analysis to show how the data underlying performance indicators can be used to generate a single measure of efficiency for an agency. The method systematically adjusts for differences in the environment that different agencies face. The potential limitations of the technique for the purpose of inter-agency comparison are then discussed.

Date: 1987
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