Measuring office productivity: A model accounting for the dependence of outflows on inflows

The measurement of productivity in the public sector is challenging, in part because of the difficulties associated with defining and quantifying outputs. Even when outputs are observable, their proper evaluation remains complex. This paper proposes a parsimonious yet generalizable model, using judicial courts as a case study, that assumes a linear production function in which each case has the same weight. The model shows that the number of resolved cases is systematically shaped by both the volume and the composition of newly filed cases. Consequently, standard productivity indicators that fail to account for the characteristics of incoming workloads may be severely biased. • We model the production problem of a judge solving filed cases. • The model assumes linear production function and equal weights to all cases. • A decrease in demand, all else equal, decreases output. • An increase in share of difficult cases, all else equal, decreases output. • Output-per-input misrepresents productivity if inflows are not accounted for.