01661cas a2200241 a 4500 AALejournalIMF000600 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451968514 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Public Sector Efficiency and Fiscal Austerity. Washington, D.C. : International Monetary Fund, 1998. 1 online resource (24 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper uses a simple model to analyze the forces that determine the size of the public sector and the quality of workers employed in that sector. Workers are heterogeneous, and the public sector chooses an employment strategy that maximizes a social welfare function U(s, Y) that depends on the share of the labor force employed in public service s and private sector output Y. The government is fully informed about worker productivity. By examining the welfare properties of the possible outcomes, we are able to illuminate situations in which policies that seek to constrain the public sector may or may not improve economic efficiency. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1998/056 Full text available on IMF http://elibrary.imf.org/view/journals/001/1998/056/001.1998.issue-056-en.xml IMF e-Library