Evaluating the economic value of a public service—the case of the Municipal Library of Prague

To allocate public resources efficiently, governments need accurate information about the performance and effectiveness of public institutions. This paper presents a new approach to valuing public services, using the example of the Municipal Library of Prague (MLP). The contingent valuation method was used with a focus on library users’ willingness to pay for individual library services. The result is an overview of the perceived value of the MLP's services and its return on public investment. The proposed methodology could be used for other public services, such as healthcare or education.