I have asked myself about this calculation sometimes. If a lot of private companies go bust, we compare governments that not go bust with the surviving companies.
In terms of resources wasted, how the inefficient of public services would fare against the resources spend in all the companies, not only the surviving ones?
It's something I have never read about, I don't know if some work has been done on this.
The hard limit on it in a private company is it going bust but there is no such constraint in the public sector