Public Sector Contribution To Competitiveness

Vincenzo Patrizii () and Giuliano Resce ()

Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, 2015, vol. 1, issue 3, 443 pages

Abstract: Conventional measures of competitiveness in terms of final prices shed little light on how those measures are affected by public expenditure. By taking productivity as a common factor to any index of competitiveness we propose to assess the Italian Public Sector contribution by its productivity in providing public services. Integration of Data Envelopment Analysis with Principal Component Analysis provides a consistent methodology to face the problem of high dimensions, which is a characterising feature of public services provision. Results show a large geographical variability in Public Sector productivity and a significant differentiation in terms of both layers of government and types of services. Thus offering evidence to identify areas, services and tiers of government lacking efficiency and constituting a potential obstacle for growth. A East–West divide emerges on top of the Country’s traditional, though less marked than commonly thought, North–South divide. Copyright Società Italiana degli Economisti (Italian Economic Association) 2015

Keywords: Public sector productivity; Data envelopment analysis; Principal component analysis; C61; D24; H11; H72; H75 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s40797-015-0017-4

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