Demand for public services: Impact on the methods of provision and financing

Authors

ŘEŽUCHOVÁ Markéta

Year of publication 2009
Type Article in Proceedings
Conference New Economic Challenges
MU Faculty or unit

Faculty of Economics and Administration

Citation
Field Economy
Keywords demand for public services; elasticity of demand; public and private financing public service providing
Description Citizens preferences and determination of public service demand play the key role in the process of choice of public service providing and financing methods. The aim of this paper is to evaluate the influence of demand elasticity on the private financing of public services. Author verifies the hypothesis, that private financing of public services is possible, when public services are provided for fee and elasticity of public service demand is sufficiently low. The first part of the paper determines and discusses the influence of public service demand on public service providing and financing methods based on the relevant literature review. In the second part, the influence of selected criteria, demand elasticity and fees, is being analyzed for different types of public services. Author designs a scheme which determines optimal financing methods for particular public services. This scheme is tested in the context of the Czech system of public services provision with respect to foreign experience

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