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Zbl 1100.62113
Smith, Peter C.; Street, Andrew
Measuring the efficiency of public services: the limits of analysis. (English)
[J] J. R. Stat. Soc., Ser. A, Stat. Soc. 168, No. 2, 401-417 (2005). ISSN 0964-1998; ISSN 1467-985X

Summary: Policy makers are increasingly seeking to develop overall measures of the efficiency of public service organizations. For that, the use of `off-the-shelf' statistical tools such as data envelopment analysis and stochastic frontier analysis have been advocated as tools to measure organizational efficiency. The analytical sophistication of such methods has reached an advanced stage of development. We discuss the context within which such models are deployed, their underlying assumptions and their usefulness for a regulator of public services. \par Four specific model building issues are discussed: the weights that are attached to public service outputs; the specification of the statistical model; the treatment of environmental influences on performance; the treatment of dynamic effects. The paper concludes with recommendations for policy makers and researchers on the development and use of efficiency measurement techniques.

MSC 2000:: *62P99 Appl. of statistics
90B99 Operations research and management science
91B18 Public goods

Keywords: data envelopment analysis; efficiency measurement; public policy; public services; stochastic frontier analysis

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