Abstract
In a series of studies, the Swedish Expert Group on Public Finance (ESO) has examined productivity trends in the public sector. Covering some 70% of the public sector, the group found an aggregate productivity loss of 1.5% a year from 1970 to 1980. In the medical services, there was a 3% decline in productivity from 1960 to 1980. One implication of the findings is that the growth rate of Swedish GNP has probably been overestimated. Determinants of productivity trends in the public sector and criticisms levelled at the studies are discussed in the paper.
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