Improving the methods for assessing the effectiveness of the public sector based on an aggregated indicator

Abstract

Purpose: the article investigates modern methods of determining the efficiency of the public sector of the economy and suggests the author’s method of general aggregated assessment based on the calculation of a three-component indicator. Discussion: in modern conditions, the public sector is an important component of the socio-economic system of the country, since it carries out state regulation of the economy and produces the goods necessary for society. Therefore, the issues of evaluating the effectiveness of its functioning assume the significance of scientific achievements and are particularly relevant. However, in economic theory there is no unified methodology for assessing the effectiveness of the public sector. Scientists offer all kinds of methods to determine its effectiveness and use various indicators. Also, most of them are based on a limited number of indicators, and some authors suggest determining the effectiveness of only one of the components of the public sector. Results: the author believes that the public sector includes public administration structures, public entrepreneurship companies and social state organizations. Each element of the public sector is characterized by an individual set of indicators for the study of their activities. Therefore, to assess the effectiveness of the public sector of the economy, it is proposed to use an aggregate three-component indicator, which is formed from the individual effectiveness of its components.