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Multiple Public Service Performance Indicators: Toward an Integrated Statistical Approach

Stephen Martin and Peter C. Smith
Journal of Public Administration Research and Theory: J-PART
Vol. 15, No. 4 (Oct., 2005), pp. 599-613
Stable URL: http://www.jstor.org/stable/3525683
Page Count: 15
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Multiple Public Service Performance Indicators: Toward an Integrated Statistical Approach
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Abstract

Public service organizations usually produce multiple outputs, measured on different scales, giving rise to a suite of performance indicators. The traditional approach to statistical analysis of organizational performance has been to develop a separate regression model for each performance indicator. This piecemeal approach, the article argues, may discard valuable information, as it ignores potentially important relationships between individual performance measures. We therefore propose modeling an organization's performance measures simultaneously, using the methods of seemingly unrelated regressions. The approach implicitly introduces a latent organizational variable into the regressions and may therefore economize on the need to assemble explicit measures of organizational characteristics. The method is illustrated using an example from English public hospitals.

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