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

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  • Kathy Hayes
  • Laura Razzolini
  • Leola Ross

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

Suggested Citation

  • Kathy Hayes & Laura Razzolini & Leola Ross, 1998. "Bureaucratic choice and nonoptimal provision of public goods: Theory and evidence," Public Choice, Springer, vol. 94(1), pages 1-20, January.
  • Handle: RePEc:kap:pubcho:v:94:y:1998:i:1:p:1-20
    DOI: 10.1023/A:1017921227907
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Marc Baudry, 2005. "Les impôts locaux sont-ils gaspillés ?," Recherches économiques de Louvain, De Boeck Université, vol. 71(2), pages 143-173.
    2. Federico Revelli, 2010. "Spend more, get more? An inquiry into English local government performance," Oxford Economic Papers, Oxford University Press, vol. 62(1), pages 185-207, January.
    3. Jos Blank, 2013. "Maximizing public value for subsidized non-profit firms: a mathematical economic model," Journal of Productivity Analysis, Springer, vol. 40(2), pages 173-183, October.
    4. Fox, William F. & Gurley, Tami, 2006. "Will consolidation improve sub-national governments ?," Policy Research Working Paper Series 3913, The World Bank.
    5. Turnbull Geoffrey K & Salvino Robert F., 2009. "Do Broader Eminent Domain Powers Increase Government Size?," Review of Law & Economics, De Gruyter, vol. 5(1), pages 785-806, December.
    6. Antonio Afonso & Carla Scaglioni, 2006. "An Assessment of Telecommunications Regulation Performance in the European Union," Working Papers Department of Economics 2006/07, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    7. repec:spr:chfecr:v:5:y:2017:i:1:d:10.1186_s40589-017-0058-y is not listed on IDEAS
    8. repec:kap:jproda:v:48:y:2017:i:1:d:10.1007_s11123-017-0500-z is not listed on IDEAS
    9. Grosskopf, Shawna & Hayes, Kathy J. & Taylor, Lori L. & Weber, William L., 2001. "On the Determinants of School District Efficiency: Competition and Monitoring," Journal of Urban Economics, Elsevier, vol. 49(3), pages 453-478, May.
    10. repec:kap:iaecre:v:7:y:2001:i:1:p:147-158 is not listed on IDEAS
    11. Nelson Marconi & Paulo Arvate & João Moura Neto & Paulo Palombo, 2009. "Vertical transfers and the appropriation of resources by the bureaucracy: the case of Brazilian state governments," Public Choice, Springer, vol. 141(1), pages 65-85, October.
    12. Jos Blank, 2009. "Non-maximizing output behavior for firms with a cost-constrained technology," Journal of Productivity Analysis, Springer, vol. 31(1), pages 27-32, February.
    13. Oscar Alfranca, 2001. "Scientific policy and free riders," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 7(1), pages 147-158, February.
    14. Afonso, António & Fernandes, Sónia, 2008. "Assessing and explaining the relative efficiency of local government," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(5), pages 1946-1979, October.
    15. Lars-Erik Borge & Torberg Falch & Per Tovmo, 2008. "Public sector efficiency: the roles of political and budgetary institutions, fiscal capacity, and democratic participation," Public Choice, Springer, vol. 136(3), pages 475-495, September.
    16. António Afonso & Sónia Fernandes, 2003. "Efficiency of Local Government Spending: Evidence for the Lisbon Region," Working Papers Department of Economics 2003/09, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    17. 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.
    18. Cordero, José Manuel & Pedraja-Chaparro, Francisco & Pisaflores, Elsa C. & Polo, Cristina, 2016. "Efficiency assessment of Portuguese municipalities using a conditional nonparametric approach," MPRA Paper 70674, University Library of Munich, Germany.
    19. António Afonso & Sónia Fernandes, 2005. "Assessing and Explaining the Relative Efficiency of Local Government: Evidence for Portuguese Municipalities," Working Papers Department of Economics 2005/19, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
    20. Antonis Adam & Manthos Delis & Pantelis Kammas, 2011. "Public sector efficiency: leveling the playing field between OECD countries," Public Choice, Springer, vol. 146(1), pages 163-183, January.
    21. Geoffrey K. Turnbull & Robert F. Salvino & Michael T. Tasto, 2014. "Does the power to use eminent domain for economic development actually enhance economic development?," Chapters,in: Entrepreneurial Action, Public Policy, and Economic Outcomes, chapter 7, pages 119-133 Edward Elgar Publishing.

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