The increased establishment of semi-autonomous agencies in most countries from the 1980s on has been justified by claims of expected improvement in public sector performance. Empirical research to test these claims has been scarce, based on single cases and showing mixed results. This study tests these claims at the macro level in twenty countries using a range of indicators and variables. Overall, we find a negative effect of agencification on both public sector output and efficiency. This refutes the economic claims about agencification.
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