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Monopoly power and monitoring: A test using the Gonzalez and Mehay model

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  • Gary Giroux

Abstract

In summary, the audit opinion is a control technique that behaves as expected in a GM model. An unqualified opinion seems to be an effective device that is associated with reduced levels of public expenditures. Higher spending is associated with qualified opinions. One interpretation of this result is the use of strategic bureaucratic roadblocks to limit the effectiveness of the audit. Copyright Kluwer Academic Publishers 1989

Suggested Citation

  • Gary Giroux, 1989. "Monopoly power and monitoring: A test using the Gonzalez and Mehay model," Public Choice, Springer, vol. 63(1), pages 73-78, October.
  • Handle: RePEc:kap:pubcho:v:63:y:1989:i:1:p:73-78
    DOI: 10.1007/BF00223273
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    References listed on IDEAS

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    1. Rodolfo Gonzalez & Stephen Mehay, 1985. "Bureaucracy and the divisibility of local public output," Public Choice, Springer, vol. 45(1), pages 89-101, January.
    2. 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.
    3. Mark Toma & Eugenia Toma, 1980. "Bureaucratic responses to tax limitation amendments," Public Choice, Springer, vol. 35(3), pages 333-348, January.
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