Supply Restricted Telecommunications Markets: The Effect of Technical Efficiency on Waiting Times

The paper is concerned with supply constraints in the provision of telecommunications services. As a measure of supply constraint we use the average waiting time for telephone connections. Duration models are employed to analyze a panel data set for 28 countries. In addition to economic variables, we consider the role of technical efficiency in causing supply constraints. Stochastic frontiers are used to determine the technical efficiency with which countries use labor and capital inputs to connect customers. When technical efficiency is included in duration models for waiting times until connection, we find that it is the major determinant.     

On the cost-benefit of the regionalisation of the National Health Service

In this paper we analyse in formal terms the desirability of the regionalisation of a National Health Service. The policy consists of a devolution process, i.e. the increase in the health services provision to be decided by a region and financed by an increase in its revenues. The change is a marginal one, as it regards the part of supply of the health services exceeding a minimum standard, which for purposes of equity is maintained uniform in the national territory. As the central government is responsible for this component of the provision of health care (a federal “mandate”), the level of the said component is chosen by this authority and financed by federal taxation. Moreover, the government also applies an equalisation scheme based on the difference between a standard level of tax revenues and the revenues which the region is deemed able to raise for this purpose. Within the theoretical context of welfare improving reforms with distortionary taxation, we derive two conditions which focus on the regional, as well as the social, convenience of regionalisation. Received: May 5, 1999 / Accepted: January 21, 2000     

Organized crime and public spending: a panel data analysis

The aim of this paper is to investigate, empirically, what components of public spending imply a decreasing effect on organized crime and what components create opportunities for organized crime, discussing also the role of government efficiency. Using a panel data analysis, the results show a strikingly consistent pattern for the EU Member States. Organized crime mainly operates in the distribution of government spending for local public goods and public provision of private services. There is a decreasing effect on organized crime of the public expenditure devoted to education and social policy. Government efficiency in public spending is beneficial to limit the opportunities of the organized crime.     

Can Government Intervention in Childcare be Justified?

Childcare is not like other goods and services. Its inherent nature creates unusual challenges for efficient delivery by the market, while its usage can have social as well as private consequences. Government involvement in childcare may therefore be justified to improve the efficiency of delivery or achieve social objectives, but its effectiveness will depend on whether policy measures can better address the challenges of childcare provision than the market. This article reviews the justification for the recent rapid development of childcare policy in the UK and considers the potential benefits and drawbacks of this growing government intervention.     

Citizens’ Entrepreneurial Role in Public Service Provision

Abstract

In public service provision, citizens are conventionally reactive, portrayed as ‘users’, ‘customers’, ‘co-producers’, or ‘participators.’ Occasionally, following dissatisfaction, citizens themselves proactively create alternative services, namely, entrepreneurial exit (EE). Laymen then become providers of previously governmental professional services. Drawing upon six EE manifestations, findings suggest that if the newly-introduced service gains social acceptance, existing provision may change in one of the three modes: (a) First-order incremental change, legitimization of EE as an alternative service provision; (b) Second-order participative change, increased public participation in service provision fostered by EE; and (c) Third-order reformative change, existing service provision is reformed to satisfy citizens’ demands.     

Performance evaluation of social service provision in Italian major municipalities using Network Data Envelopment Analysis

This paper employs Network Data Envelopment Analysis (NDEA) to measure the municipality performance. The NDEA approach allows to have a more comprehensive evaluation of the municipality performance if compared to traditional DEA. The proposed NDEA model aims at shedding new light on the efficiency-effectiveness relationship in the provision of social services by municipalities. Municipal efficiency and effectiveness are combined to generate a single performance measure which can be considered as a proxy measure of the value for money of municipality services. A sample including 103 major Italian municipalities is used as a case to implement the proposed model. Findings indicate that there is no trade-off between the efficiency and effectiveness components of the overall municipal performance score, but rather they appear to be preconditions of each other. Therefore, higher level of performance can be achieved without conflicting one against the other. Furthermore, only 6 municipalities achieve the highest performance level, suggesting that there is still room for improving the performance of a great number of municipalities.     

The Government Service Delivery Project: A Case Study of the Push and Pull of Central Government Coordination

Fragmentation and the lack of appropriately coordinated government services are widely considered to be costly problems impeding effective and efficient government service provision. Moreover, there is a growing realization that many modern social issues have developed into meta-problems that cannot be resolved by the traditional single agency approach. Coordination of services through more cooperative and collaborative networks of relationships between government agencies has become a preferred strategy for many public administrators. This article gives an account of a public sector initiative aimed at enhancing service provision through the formation and management of interdepartmental networks of coordinative and cooperative action. It concludes that although networks are a useful mechanism of social coordination, their inherent benefits may be jeopardized when network management issues make them vulnerable to pressures from the centre.     

Identifying barriers to the application of standardized performance indicators in local government

Abstract

Local governments in many countries are implementing administrative reforms within the framework of New Public Management (NPM) in order to improve the quality and productivity of public services. The use of performance indicators and benchmarking facilitates evaluation of efficiency regarding the provision of such services and favours the acquisition of better practices. The problems that may arise in the introduction of performance indicators in local government mainly concern the consensual design and standardization of indicators for various entities, the method to be used for calculations and the selection of analytical criteria to be applied to the values obtained. In this article, we identify obstacles that may be encountered in achieving a standardized definition of performance indicators within local government and, on the basis of learning from the practical experience of several large city councils in Spain, formulate strategies to resolve these problems, taking note of the viability and real efficacy of the solutions adopted.     

Incentives and the Efficiency of Public Sector-outsourcing Contracts

Abstract.  Outsourcing the provision of traditionally publicly provided services has become commonplace in most industrialized nations. Despite its prevalence, there still is no consensus in the academic literature on the magnitude (and determinants) of expected cost savings to the government, nor the sources of those savings. This article considers the arguments for (and against) outsourcing and then examines the empirical evidence pertaining to whether any observed savings occur and whether they persist over time. In addition, we examine the existing evidence for the 'redistribution hypothesis' and the 'quality-shading hypothesis', which critics have used to argue that outsourcing lowers government expenditure by lowering wages and conditions and/or lower quality services. Finally, we consider the impact of contract design on outsourcing outcomes. While the power of incentives is a strong theme in economics, recent work has suggested that high-powered incentives may be suboptimal for many public sector services, because they may crowd out intrinsic motivation, particularly in instances where agents are highly motivated. We discuss the implications of this insight for the efficiency of public sector outsourcing.     

Rethinking the policy of contracting out Social Services to non-governmental organizations

The article describes, analyzes and evaluates the lessons and dilemmas resulting from the Government's policy of contracting out with non-governmental organizations for the provision of three types of services: foster care, adoption and home care services for the elderly. The dilemmas are: structural tension between governmental control and autonomy of provider organizations; power?–?dependence relations between the Government and the providers, the choice option available to clients; the ethical, moral and professional aspects of contractualism; the myth of innovative programs initiated by provider organizations; service quality versus price of services; and accountability of provider organizations to their stakeholders. Based on the lessons learned, the article highlights the need to rethink the strategy of contracting out and reassess the role of the Government in providing social services.     

The connectivity of infrastructure networks and the urban space of São Paulo in the 1990s

This article explores the strategic importance of information systems for social control of networked services on urban and regional scales, and the nature of the information required for that purpose. The standard indicators of infrastructure coverage – by and large based on the number and encompassment of connections – no longer respond to the real conditions of supply and consumption. The technological and managerial innovations in flow control and dispatch, along with the effects of combined access to multi‐mode networks, render the evaluation of services’ connectivity considerably more complex than it used to be in the past. Private domination over the supply structure of these services tends to make the political struggle for equitability more dependent on the technical reliability of information than it could have been under the model of state supply. Networked services’ management has evolved to a more demand‐oriented structure, but this structure has so far reproduced the structural inequalities of Brazilian society in favor of powerful stakeholders, e.g. large consumers. The potential for more democratic control associated with this new balance between supply and demand in networked services can only evolve if more vulnerable social groups have access to sound technological and managerial information. To support this idea the article shows the importance of connectivity indicators in determining the effective access to networked utilities in the Metropolitan Area of São Paulo, in contrast to the traditional indicators of services’ coverage. Cet article explore l’importance stratégique des systémes d’information pour le contrôle social des services de réseaux au niveau urbain et régional, et la nature de l’information nécessaire pour cela. Les indicateurs habituels du niveau d’information sur l’infrastructure – généralement basés sur le nombre et la compréhension des relations – ne répondent plus aux conditions réelles de provision et de consommation. Les nouveautés de technologie et de gestion dans le contrôle du mouvement et dans les expéditions, ainsi que les effets de l’accés joint aux réseaux à modes multiples, rendent l’évaluation des liens entre les services beaucoup plus complexe que précédemment. La domination de la structure de provision de ces services par le domaine privé a tendance à rendre la lutte politique pour la justice plus dépendante de la fiabilité des informations qu’elle aurait pu l’? tre dans le modéle de provision par l’état. La gestion des services de réseaux a évolué vers une structure orientée vers la demande, mais jusqu’à présent cette structure a reproduit les inégalités structurelles de la société brésilienne qui favorise des détenteurs de pouvoir, par exemple les gros consommateurs. Les possibilités d’un contrôle plus démocratique associéà cet équilibre nouveau entre la provision et la demande dans les services de réseaux ne peut se développer que si les groupes sociaux les plus vulnérables ont accés à une information technologique et gestionnaire fiable. Pour soutenir cette opinion, l’article démontre l’importance des indicateurs de rapports pour déterminer des conditions d’accés efficaces aux entreprises de service de réseaux dans la région métropolitaine de Sao Paulo, au contraire des indicateurs traditionnels de l’information des services.     

Collective Action and the Sustainability of Co-Production

Abstract

This article addresses the sustainability of citizen/user participation in the provision of public services, often referred to as co-production. Co-producing public services not only promises to limit cost, but it also requires a change in the relations and behaviour of public servants and citizens/users, in order for the latter to make a long-term commitment to co-production. The article notes that Olsen proposes two logics of collective action, not just one. Focusing on small group interaction can provide an important strategy for achieving sustainable co-production, particularly of enduring welfare services. However, Ostrom criticizes too simplistic approaches based on size alone for promoting social cooperation in collective action situations. She proposes seven structural variables of importance in resolving social dilemmas. Several of them can also be perceived as factors that facilitate sustainable citizen participation in co-production. Some additional factors are also considered important for sustainable co-production, like the nature of the service itself, organizational diversity, a dialogue between the staff and clients, and facilitating small group interactions in large organizations. This article concludes that governments should develop more flexible, service-specific and organization-specific approaches for promoting co-production, rather than looking for simple ‘one size fits all’ solutions to the challenges facing public service delivery, particularly of enduring welfare services. It also proposes a research agenda on sustainable co-production.     

加拿大低成本高效益卫生保障体系的感悟及思考

为全民及时提供高质量卫生服务是加拿大卫生改革发展的基本趋势。本文就加拿大卫生改革的经验和教训,从公平、效率和长期性三方面阐述了我国卫生改革发展可借鉴之处。     

Exploring the performances and determinants of public service provision in 35 major cities in China from the perspectives of efficiency and effectiveness

The measurement of public service provision (PSP) performance and identification of its influencing variables are of great importance for the government to efficiently utilize public resources and provide more effective public services. However, existing studies have mainly focused on the efficiency to provide public services and ignored the effectiveness to improve public subjective well-being. To fill this gap, this study constructs a two-stage PSP conceptual model from the perspective of service production and consumption and develops a corresponding PSP performance evaluation indicator system to evaluate PSP efficiency, effectiveness, and comprehensive performance. The PSP performances of 35 major cities in China during 2011–2018 are calculated using the super efficiency network slack-based measure model. Moreover, the influencing factors of these performances are identified through the truncated regression model. Results indicate that the comprehensive performance of these cities is relatively low and shows a trend of decrease that is predominantly caused by provision efficiency. Owing to the absolute advantage in effectiveness and the catch-up effect in efficiency, cities in the western region perform the best in comprehensive performance, followed by the eastern region and then the central region. In addition, only seven cities achieve a balance between efficiency and effectiveness. Factors from economy, society, government, and public aspects have different impacts on PSP performances. On the basis of these findings, several policy suggestions are proposed. This study proposes a relatively comprehensive and accurate measurement framework of PSP performance that considers both efficiency and effectiveness and can help policymakers implement appropriate strategies promoting PSP in an efficient, effective, and sustainable manner.     

Are not-for-profits different? Theory and evidence on the pricing of health services in Uganda

Public provision of health and education in developing countries is often insufficient and inefficient. There is thus a call for a greater involvement of private providers to supply affordable and high-quality services to the population. In particular, it is often suggested that not-for-profit institutions should play a larger role, given their social mission. But do not-for-profits really behave differently from for-profit institutions? The literature does not provide a clear answer to this question. The present contribution offers evidence based on a simple theoretical model and price data from health care providers in Uganda with different governance structures. Using differences in market structure as source of variation, we find that not-for-profits indeed behave differently from for-profit institutions, with a pricing behavior that is consistent with an emphasis on health impact and not just profit maximization. Our results thus provide an argument for a policy trying to attract not-for-profit health clinics to fill the gap of an inefficient public health provision.     

Designing e-government services: Key service attributes and citizens’ preference structures

Advances in Internet technologies have led to the popularity of technology-based self-services, with the design of such services becoming increasingly important. Using technology-based services in the public sector as the setting, we identified the key service attributes driving adoption and use of transactional e-government services, and citizens’ preference structures across these attributes. After identifying four key attributes, i.e., usability, computer resource requirement, technical support provision and security provision, we conducted a Web-based survey and a conjoint experiment among 2465 citizens. In a two-stage Web-based survey, citizens reported their perceptions about a smartcard technology for transactional e-government services before use, and their use and satisfaction 4 months later. Results showed that the key attributes (noted above) influenced citizens’ intentions, subsequent use and satisfaction. In the conjoint experiment, citizens reported their preferences for key service attributes for two transactional e-government services. Further, a cluster analysis uncovered four distinct citizen segments, i.e., balanced, usability-focused, risk-conscious and resource-conservative, that can inform efforts in designing e-government services. A post hoc analysis confirmed the appropriateness of the market segmentation in understanding citizens’ adoption and use of transactional e-government services.     

The Value of Secondary School Quality*

Improving the quality of state‐funded secondary school education has become a major policy aim in the UK. However, without a valuation of the social benefits derived from public provision of educational services, the rational evaluation of policy to this end is difficult. Utilizing the argument that dwellings near better schools command a price premium, this paper presents results from an empirical exercise aimed at providing such a social valuation of increased school quality. Using a large set of data for England, and an instrumental variable approach, results indicate an elasticity of dwelling purchase price with respect to exam performance by schools at around +0.05. One implication is that society would value a general increase of five percentage points in exam performance by about £450 million per annum.     

An analysis of the cost of providing ancillary services to skilled nursing facility patients in New York State

Currently, nursing homes can arrange for the provision of ancillary services either by providing the services directly, purchasing the services through contracts and fees, or by outside billings, in which the services are supplied by other providers who then bill Medicaid directly. Frequently, some combination of these three modes of provision is used for each ancillary service. The purpose of this study is to explore ancillary costs in a sample of nursing homes and to determine, to the extent possible, the most cost-efficient means of providing selected ancillary services (physical therapy, radiology and medical staff services). Prior to examining the impact of the mode of provision on cost levels, other facility and patient characteristics that might justifiably affect costs are identified and adjusted for. The results demonstrate that outside billing or purchasing services can be much less expensive than providing the services directly. It is suggested that all ancillary services (outside billings as well as services provided directly through contracts and fees) be included when facility-to-facility cost comparisons are made. This approach should serve as an incentive for nursing homes to seek the most cost-efficient means of providing ancillary services.     

A conceptual framework for the location of public facilities in the urban areas of developing countries: the Nigerian case

The provision of adequate public services to their urban populations within the constraints of financial resources is a major problem of most developing countries. The fact that the few available facilities are unevenly distributed in the urban areas suggests a need for efficient physical planning of public services. This paper suggests a conceptual framework for the provision of public services in Nigerian urban areas. The paper identifies the supply and demand factors which should govern the distribution of public services in the urban areas of the country.     

The Provision of Tax Services by Incumbent Auditors and Earnings Management: Evidence from Korea

This study examines the associations between the provision of tax services by incumbent auditors and earnings management. We investigate whether three different effects of tax service provision play different roles in accounting practices. The three effects include the audit independence effect, the knowledge spillover effect, and the tax avoidance effect. If the provision of tax services by incumbent auditors harms auditor independence, firms may exercise greater earnings management (audit independence effect). However, if incumbent auditors gain incremental knowledge by offering tax services, the quality of their audit services could be enhanced, and therefore, reported earnings could be more conservative (knowledge spillover effect). If tax service fee leads to low taxable income, it could depress book income when book-tax conformity is high (tax avoidance effect). We find that the provision of tax services generally improves earnings quality by curtailing opportunistic accounting practices. The results also suggest that the negative association between the provision of tax services and discretionary accruals seems to be primarily driven by the knowledge spillover effect as opposed to the tax avoidance effect. Additional analysis is conducted in examining whether the tax avoidance effect exists in a sub-sample.