Political authority, expertise and government bureaucracies
AbstractBy applying the Revelation Principle, we focus on how a sponsor, who possesses political authority, could minimise the efficiency losses when bureaucrats are experts - that is, when they control information about the true costs of public services production. Our results come in striking contrast to those in the literature on bureaucracies and public procurement. In a two-types setting, and in the absence of monitoring and control mechanisms, we find that the agency is productively efficient. Under certain conditions, the agency is also allocatively efficient, while, under others, the low-cost bureau oversupplies and the high-cost agency undersupplies its output. Copyright Springer Science + Business Media, Inc. 2006
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Springer in its journal Public Choice.
Volume (Year): 127 (2006)
Issue (Month): 3 (June)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=100332
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Barbara Spencer, 1979. "Outside Information and the Degree of Monopoly Power of a Public Bureau," Working Papers 361, Queen's University, Department of Economics.
- Armstrong, Mark, 1996. "Multiproduct Nonlinear Pricing," Econometrica, Econometric Society, vol. 64(1), pages 51-75, January.
- Casas-Pardo, Jose & Puchades-Navarro, Miguel, 2001. " A Critical Comment on Niskanen's Model," Public Choice, Springer, vol. 107(1-2), pages 147-67, April.
- Miltiadis Makris, 2006.
"Incentives for Motivated Agents under an Administrative Constraint,"
0601, Exeter University, Department of Economics.
- Makris, Miltiadis, 2009. "Incentives for motivated agents under an administrative constraint," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 428-440, August.
- Pauly, Mark V, 1987. "Nonprofit Firms in Medical Markets," American Economic Review, American Economic Association, vol. 77(2), pages 257-62, May.
- José Casas-Pardo & Miguel Puchades-Navarro, 2001. "A Critical Comment on Niskanen's Model," Public Choice, Springer, vol. 107(1), pages 147-167, April.
- Dewatripont, Mathias & Jewitt, Ian & Tirole, Jean, 1999.
"The Economics of Career Concerns, Part II: Application to Missions and Accountability of Government Agencies,"
Review of Economic Studies,
Wiley Blackwell, vol. 66(1), pages 199-217, January.
- Mathias Dewatripont & Ian Jewitt & Jean Tirole, 1999. "The economics of career concerns: part 2 :application to missions and accountability of government agencies," ULB Institutional Repository 2013/9641, ULB -- Universite Libre de Bruxelles.
- Breton, Albert & Wintrobe, Ronald, 1975. "The Equilibrium Size of a Budget-maximizing Bureau: A Note on Niskanen's Theory of Bureaucracy," Journal of Political Economy, University of Chicago Press, vol. 83(1), pages 195-207, February.
- Timothy Besley & Maitreesh Ghatak, 2005.
"Competition and Incentives with Motivated Agents,"
American Economic Review,
American Economic Association, vol. 95(3), pages 616-636, June.
- McCubbins, Mathew D & Noll, Roger G & Weingast, Barry R, 1987. "Administrative Procedures as Instruments of Political Control," Journal of Law, Economics and Organization, Oxford University Press, vol. 3(2), pages 243-77, Fall.
- Johnson, Ronald N & Libecap, Gary D, 1982. "Contracting Problems and Regulation: The Case of the Fishery," American Economic Review, American Economic Association, vol. 72(5), pages 1005-22, December.
- De Fraja, Giovanni, 1993. "Productive efficiency in public and private firms," Journal of Public Economics, Elsevier, vol. 50(1), pages 15-30, January.
- Francois, Patrick, 2000. "'Public service motivation' as an argument for government provision," Journal of Public Economics, Elsevier, vol. 78(3), pages 275-299, November.
- Aleksandar Vasilev, 2013. "On the cost of rent-seeking by government bureaucrats in a Real-Business-Cycle framework," Working Papers 2013_20, Business School - Economics, University of Glasgow.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Guenther Eichhorn) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.