In Germany all public authorities exhibit a great necessity of consolidation. The debate about the consolidation basically focuses either on the expenditures or on the revenues of the public authorities. Less attention has been drawn to the possible increase in the efficiency of the public sector. In these analyses indicators determining the provision of public goods are compared with the resources used to ensure this provision. The project aims at developing indicators for measuring the efficiency of public good provision in Germany. Thereby, the focus will lie on the state and municipal level. For the development of the indicators parametric methods as well as non-parametric methods are used. The former assume a functional form of the public cost or production function whereas the latter gather from the observations of the inputs and outputs on the efficiency border.