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Abstract The goal of this paper is to discuss the role System Dynamics (SD) can play to enhance performance improvement in the public sector. It is remarked how SD can help decision makers to properly perceive the boundaries of the relevant system underlying observed phenomena. To this end, three real cases are analysed to show how SD can facilitate a better understanding of the relationships between the political and the organisational system in the public sector, and how to promptly attain efficiency and improve outcome, given the constraints that the institutional and political systems constitute. Copyright © 2010 John Wiley & Sons, Ltd.
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