The Impact of Reducing the Administrative Costs on the Efficiency in the Public Sector

Ani Matei () and Carmen Savulescu

MPRA Paper from University Library of Munich, Germany

Abstract: The goal of the paper is to evaluate the impact of reducing the administrative costs on the efficiency in the public sector. Within the general framework provided by the specialised literature, the proposed methodology uses the classical model of a function of production, thus describing the factors of influence of the administrative costs on production and productivity in the public sector. The theoretical results are empirical exemplified for a local service of public utility. Adapting the theoretical model to the empirical situation is grounded on statistic methods of analysis and regression. The interpretation of results inscribes in the economic framework specific for public economics. The results aim both the novel model of analysis and the concrete evaluation of the economic impact of reducing the administrative expenditure in the public sector. At the same time, the general topic of reducing the administrative costs is extended towards the public sector. The most relevant conclusion refers to the capacity of the classical economic models in developing the public sector

Keywords: administrative costs; efficiency; productivity; public sector (search for similar items in EconPapers)
JEL-codes: D73 H59 H72 (search for similar items in EconPapers)
Date: 2009-02-15, Revised 2009-11-15
New Economics Papers: this item is included in nep-eff, nep-pbe and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:19018

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