An economic evaluation of public libraries´s services – case of the Czech Republic

Abstract

To appropriate allocation of public resources is increasingly assessed the performance and effectiveness of public institutions. Economic valuations of public libraries are being carried out more frequently in recent times. In the middle of 90´s researches have begun to measure their value and ask users for their opinion regarding the libraries performance. The economic value of public libraries for local residents in Czech Republic was measured in this paper. An economic value measurement model that enables the estimation of diverse types of public library services was designed, using a contingent-valuation measurement method. Benefits were taken as the value of the main services provided by public libraries, such as accessibility to informational materials, facilities and programs. Costs included the total amount of expenses at libraries such as personnel expenses, materials purchasing expenses and other operational costs. Data for the analysis were collected for 37 public libraries in the Czech Republic. The return on investment (ROI) was calculated to be 5,86 – 6,17 %. That is, for every $1.00 spent on analyzed Czech public libraries, on average $6.00 of value was realized by taxpayers.