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Bureaucratic choice and nonoptimal provision of public goods: Theory and evidence

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Author Info
Kathy Hayes
Laura Razzolini
Leola Ross

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Abstract

Local governments' allocation decisions are modeled in the context of a slack maximizing bureaucrat who produces public goods according to a production function that includes both provision and the constituents' socio-economic characteristics. To gain a better understanding of the determinants of slack, comparative statics and an empirical study of Illinois municipalities are conducted. The indirect output distance function provides efficiency scores upon which we regress several variables, representing socio-economic characteristics, costs and competition measures. We find that slack or inefficient behavior is associated with richer communities, lower education levels and a lack of competition for residents among municipalities. Copyright Kluwer Academic Publishers 1998

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File URL: http://hdl.handle.net/10.1023/A:1017921227907
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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 94 (1998)
Issue (Month): 1 (January)
Pages: 1-20
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:kap:pubcho:v:94:y:1998:i:1:p:1-20

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References listed on IDEAS
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.:
  1. Hamilton, Bruce W., 1983. "The flypaper effect and other anomalies," Journal of Public Economics, Elsevier, vol. 22(3), pages 347-361, December. [Downloadable!] (restricted)
  2. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416. [Downloadable!] (restricted)
  3. Davis, Michael L & Hayes, Kathy, 1993. "The Demand for Good Government," The Review of Economics and Statistics, MIT Press, vol. 75(1), pages 148-52, February. [Downloadable!] (restricted)
  4. Greene, William H., 1980. "Maximum likelihood estimation of econometric frontier functions," Journal of Econometrics, Elsevier, vol. 13(1), pages 27-56, May. [Downloadable!] (restricted)
  5. Gradstein, Mark, 1992. "Time Dynamics and Incomplete Information in the Private Provision of Public Goods," Journal of Political Economy, University of Chicago Press, vol. 100(3), pages 581-97, June. [Downloadable!] (restricted)
  6. Fare, R. & Grosskopf, S. & Lovell, C. A. K., 1988. "An indirect approach to the evaluation of producer performance," Journal of Public Economics, Elsevier, vol. 37(1), pages 71-89, October. [Downloadable!] (restricted)
  7. Brueckner, Jan K., 1982. "A test for allocative efficiency in the local public sector," Journal of Public Economics, Elsevier, vol. 19(3), pages 311-331, December. [Downloadable!] (restricted)
  8. Pommerehne, Werner W & Frey, Bruno S, 1978. "Bureaucratic Behavior in Democracy: A Case Study," Public Finance = Finances publiques, , vol. 33(1-2), pages 98-112.
  9. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law & Economics, University of Chicago Press, vol. 18(3), pages 617-43, December.
  10. Sonstelie, Jon C. & Portney, Paul R., 1980. "Gross rents and market values: Testing the implications of Tiebout's hypothesis," Journal of Urban Economics, Elsevier, vol. 7(1), pages 102-118, January. [Downloadable!] (restricted)
  11. Deller, Steven C. & Rudnicki, Edward, 1993. "Production efficiency in elementary education: The case of Maine public schools," Economics of Education Review, Elsevier, vol. 12(1), pages 45-57, March. [Downloadable!] (restricted)
  12. Schmidt, Peter & Sickles, Robin C, 1984. "Production Frontiers and Panel Data," Journal of Business & Economic Statistics, American Statistical Association, vol. 2(4), pages 367-74, October.
  13. Grosskopf Shawna & Hayes Kathy, 1993. "Local Public Sector Bureaucrats and Their Input Choices," Journal of Urban Economics, Elsevier, vol. 33(2), pages 151-166, March. [Downloadable!] (restricted)
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Cited by:
(explanations, 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.)

  1. António Afonso & Sónia Fernandes, 2006. "Measuring local government spending efficiency: Evidence for the Lisbon region," Regional Studies, Taylor and Francis Journals, vol. 40(1), pages 39-53, February. [Downloadable!] (restricted)
  2. Lars-Erik Borge & Torberg Falch & Per Tovmo, 2007. "Public Sector Efficiency: The Roles of Political and Budgetary Institutions, Fiscal Capacity and Democratic Participation," Working Paper Series 8407, Department of Economics, Norwegian University of Science and Technology. [Downloadable!]
    Other versions:
  3. Fox, William F. & Gurley, Tami, 2006. "Will consolidation improve sub-national governments ?," Policy Research Working Paper Series 3913, The World Bank. [Downloadable!]
  4. Revelli Federico, 2008. "Spend more, get more? An inquiry into English local government performance," Department of Economics Working Papers 200804, University of Turin. [Downloadable!]
  5. Laurens Cherchye & Bruno De Borger & Tom Van Puyenbroeck, 2004. "Nonparametric tests of optimizing behavior in public service provision: Methodology and an application to local safety," Public Economics Working Paper Series ces0416, Katholieke Universiteit Leuven, Centrum voor Economische Studiën, Working Group Public Economics. [Downloadable!]
    Other versions:
  6. António Afonso & Sónia Fernandes, 2005. "Assessing and Explaining the Relative Efficiency of Local Government: Evidence for Portuguese Municipalities," Working Papers 2005/19, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
  7. Antonio Afonso & Carla Scaglioni, 2006. "An Assessment of Telecommunications Regulation Performance in the European Union," Working Papers 2006/07, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
  8. João Silva Moura Neto & Nelson Marconi & Paulo Eduardo Moledo Palombo & Paulo Roberto Arvate, 2006. "Vertical Transfers And The Appropriation Of Resources By The Bureaucracy: The Case Of Brazilian State Governments," Anais do XXXIV Encontro Nacional de Economia [Proceedings of the 34th Brazilian Economics Meeting] 136, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
    Other versions:
  9. António Afonso & Sónia Fernandes, 2003. "Efficiency of Local Government Spending: Evidence for the Lisbon Region," Working Papers 2003/09, Department of Economics at the School of Economics and Management (ISEG), Technical University of Lisbon.. [Downloadable!]
  10. Marc Baudry, 2005. "Les impôts locaux sont-ils gaspillés ?," Recherches économiques de Louvain, De Boeck Université, vol. 71(2), pages 143-173. [Downloadable!]
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