Suchergebnisse

Abstract. Numerous proposals have been made for improving the provision of collective services. The major ones are explored including reduction of public sector size, introduction of greater competition into the provision of collective services, greater use of incentives to foster sector private sector production, direct substitution of private for public production, and redefinition of the outputs expected from collectively provided services. The advantages and disadvantages of each are considered in light of the multiple sources of public sector inefficiency. No one proposal to eliminate inefficiency in the provision of collective services is likely to succeed. What is needed is careful consideration of the alternatives for each type of public sector service.

Abstract. Government inefficiency arises from failure of preference, production, and delivery The first occurs when government produces a different mix of collective services than is socially desirable; the second when government produces services less efficiently than it could at given cost levels; the third when the targeted beneficiaries fail to receive the intended level of services. A taxonomy of causes of each type of failure is developed and the conclusion drawn that some inefficiency is inevitable when collective services are provided. At issue is how much inefficiency should be tolerated when the gains to society from the provision of collective services outweigh the costs and how existing inefficiencies can be reduced to lower levels.