Prosocial behavior in the production of publicly provided goods and services: an overview

This paper offers a selective review of research on the existence and effects of prosocial behavior among individuals who work in public organizations. We first present evidence from the empirical literature documenting the importance of such phenomena and their features. We then discuss theoretical works that analyze the implications of prosocial behavior for the optimal design of incentive schemes and for organizing production in public firms. Some policy recommendations from the literature are also discussed.