The article illustrates how to build up a practical and suitable economic model of public administration. The system described by the author cannot explain every single phenomena of the so called "public administration acting space". The primary function of the model is rather to prepare the public administration (as a test object) for other, further analysis - especially for measuring performance. The conclusion of the article is that public administration is not a special test object. A significant quantity of measurement tools is available so that we can understand the main issues of the operation of public administration - from an economic point of view.

Journal of Eonomic Literature (JEL) classification: H44, H70, H83, K10