Public Goods Production


Government Efficiency 
Public Goods Post | November 2018

The public sector is often more efficient than the private sector. A recent, well-researched paper dispels the myth that the private sector is inherently more efficient than government. In fact, in most cases public provision is functionally more efficient and less costly for taxpayers. The study, “Economic Benefits of Public Services,” published in the Real-World Economics Review, is an analysis of multiple studies that compare direct government provision with privatized or outsourced services. There is no evidence that the private sector is more efficient. So, if the private sector does not have any efficiency advantage, then there is nothing to offset the higher cost of private capital, and it is always likely better value to use the public sector. – read more —