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Making politicians and bureaucrats deliver: decentralization and interlinked tasks

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  • Goyal, Ashima

Abstract

The paper analyzes incentive compatible task allocation between bureaucrats, central and local politicians in conjunction with the type of task. If effort in one task is an input in another task, giving the bureaucrat the second task as his objective will ensure the completion of both tasks. Compared to central politicians, lower level politicians may have more local power so decentralization requires a compensatory rise in local monitoring to make them more accountable to the public. Local monitoring is relatively easier, but even with it, local politicians put in less effort than local bureaucrats. Showing how the analysis can improve the provision of durable assets under the Mahatma Gandhi national rural employment guarantee scheme, and more generally improve the quality of public services, demonstrates its utility

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 41416.

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Date of creation: 01 Apr 2010
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Publication status: Published in Indian Economic Journal 4.57(2010): pp. 3-19
Handle: RePEc:pra:mprapa:41416

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Keywords: Politician; bureaucrat; incentives; task allocation; decentralization;

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  1. Alberto Alesina & Guido Tabellini, 2007. "Bureaucrats or Politicians? Part II: Multiple Policy Tasks," Levine's Working Paper Archive 321307000000000875, David K. Levine.
  2. Alberto Alesina & Guido Tabellini, 2007. "Bureaucrats or Politicians? Part I: A Single Policy Task," American Economic Review, American Economic Association, American Economic Association, vol. 97(1), pages 169-179, March.
  3. Cooper, Russell & John, Andrew, 1988. "Coordinating Coordination Failures in Keynesian Models," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 103(3), pages 441-63, August.
  4. Tirole, J., 1993. "The Internal Organization of Government," Working papers 93-11, Massachusetts Institute of Technology (MIT), Department of Economics.
  5. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change
    [Understanding the Process of Economic Change]
    ," Introductory Chapters, Princeton University Press.
  6. Fuhito Kojima, 2008. "Bureaucrats or Politicians? Comment," American Economic Review, American Economic Association, American Economic Association, vol. 98(1), pages 561-62, March.
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