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Benchmarking Performance

PFM, Vol. 4 No. 3, (2004)

An important challenge in the design of performance
measurement, accountability, and incentive systems is the
establishment of relevant benchmark levels of performance, also known
as performance standards. We review information economics literature
and draw simple lessons for the construction of performance
standards. We demonstrate the relevance of these lessons in the context
of a job training government organization.

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