Recurrent cost and performance comparisons within public administration: A method of generating efficiency-promoting competition

Economists (e.g., Niskanen) usually advocate increased competition in order to increase efficiency within public administration. To bring about competition that promotes efficiency, it is not necessary to oblige the public body (e.g., central government authority, municipal administration) to compete with other producers concerning who is to provide the public service. Such competition can also be generated with the aid of continuous productivity and efficiency comparisons between public bodies which provide similar services.