EconPapers    
Economics at your fingertips  
 

Market mechanisms in public service provision

Hansjörg Blöchliger

No 6, OECD Working Papers on Fiscal Federalism from OECD Publishing

Abstract: This paper compares and analyses the use of market mechanisms in core sub-central policy areas, namely education, health care, transport, social protection, and environment. Arrangements like tendering, outsourcing, user choice and competition, user fees and performance-related funding can help to improve quality of service provision or lower its cost. With around 32% of total public expenditure and often wide-ranging spending powers, sub-central governments (SCG) have considerable leeway for improving their services by relying on market mechanisms. The decentralised and often fragmented nature of sub-central government poses some special challenges to efficient arrangements, however, and may require central government support or stronger inter-jurisdictional co-operation. And while market mechanisms are being harnessed ever more broadly, limits to a more extensive use have become apparent, particularly in the potential trade-off between greater efficiency and equity objectives, or between efficiency and sub-central accountability..

Keywords: fiscal discipline; fiscal rules; indicators; Sub-central government (search for similar items in EconPapers)
JEL-codes: C43 D78 H71 H72 H74 H81 (search for similar items in EconPapers)
Date: 2018-09-26
New Economics Papers: this item is included in nep-reg
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.1787/4c56c441-en (text/html)

Related works:
Working Paper: Market Mechanisms in Public Service Provision (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:ctpaab:06-en

Access Statistics for this paper

More papers in OECD Working Papers on Fiscal Federalism from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-07-06
Handle: RePEc:oec:ctpaab:06-en