OECD Journal on Budgeting

The OECD Journal on Budgeting is published three times per year. It draws on the best of the recent work of the OECD Working Party of Senior Budget Officials (SBO), as well as special contributions from finance ministries, academics and experts in the field and makes it available to a wider community in an accessible format. The journal provides insight on leading-edge institutional arrangements, systems and instruments for the allocation and management of resources in the public sector.

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Public sector productivity

Measurement challenges, performance information and prospects for improvement

Improving productivity at the organisational level offers the greatest immediate dividends and could successfully cover the largest departments and agencies at the central or national level. For many decades the measurement of government outputs in national statistics and economic accounts used inputs, which assumes that government productivity neither grows nor falls. Modern solutions exist however, that can generate empirically useful metrics of total outputs from which stakeholders could learn key lessons about the productivity of their agencies over time. This article outlines the tools needed to apply these modern solutions and offers recommendations for improving cross-national productivity data for government.

JEL Codes: H10, H11, H30

Keywords: Productivity measurement, core inputs, quality weighting, labour, regression analysis                                                    


JEL: H10: Public Economics / Structure and Scope of Government / Structure and Scope of Government: General; H11: Public Economics / Structure and Scope of Government / Structure, Scope, and Performance of Government; H30: Public Economics / Fiscal Policies and Behavior of Economic Agents / Fiscal Policies and Behavior of Economic Agents: General
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