The Productivity of the Public Sector: A Classical View

PSL Quarterly Review, Vol. 66, No. 267, pp. 403-434, anno 2013

32 Pages Posted: 19 Jun 2014

Date Written: December 15, 2013

Abstract

We define public administrations (PAs) as productive units, and analyze the recent trends in PAs’ productivity applying Sylos Labini’s productivity function model. At the microeconomic level, we propose a model of government action for the production of public goods. At the macroeconomic level, we underline the relevance of distinguishing the public and the private sectors in growth accounting exercises, and show that both sectors can fruitfully contribute to economic growth.

A preliminary application of the model to the estimation of the impact of e-Government processes highlights a significant relationship between e-Government and PAs’ productivity growth in a number of OECD countries.

Keywords: productivity growth, public sector, e-Government

JEL Classification: H11, E12, O47

Suggested Citation

Corsi, Marcella and D'Ippoliti, Carlo, The Productivity of the Public Sector: A Classical View (December 15, 2013). PSL Quarterly Review, Vol. 66, No. 267, pp. 403-434, anno 2013. Available at SSRN: https://ssrn.com/abstract=2456199

Marcella Corsi (Contact Author)

University of Rome I ( email )

Piazzale Aldo Moro 5
Rome, 00185
Italy

Carlo D'Ippoliti

University of Rome I ( email )

Piazzale Aldo Moro 5
Roma, Rome 00185
Italy

HOME PAGE: http://dipartimento.dse.uniroma1.it

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