How to Rebuild the Quality of Public Services at the Local Government Level During the Covid-19 Pandemic from the Transaction Cost Theory Perspective

Abstract

Purpose: The objective of paper is to consider transaction cost theory to analyse and improve local government operations during the SARS-COV-2 pandemic. Design/Methodology/Approach: The article was prepared according to a neo-institutional approach, combining systemic, institutional and comparative methods. Findings: Public forms of performing public tasks (budgetary establishments and budgetary units) at the local government level during the Covid-19 pandemic enable the restoration of the quality of public services and counteract speculation in the market of public goods and services. Practical Implications: The paper presents a universal mechanism for selecting organisational forms of performing public tasks based on transaction cost theory that can be used by local authorities, civil servants and public sector experts alike during the Covid-19 pandemic. Originality/Value: The comparison of public task forms with private ones highlighted the important role played by local government in rebuilding the market of public goods and services during the Covid-19 pandemic.