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Commodity Bundling and Agenda Control in the Public Sector

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  • Robert J. Mackay
  • Carolyn L. Weaver

Abstract

In the public sector, commodity bundling involves an agenda setter exercising control over a governmental unit's budgetary mixâ€â€the allocation of the unit's total budget to its various subactivitiesâ€â€in order to manipulate electoral outcomes on other fiscal variables such as the total budget. This paper develops an analytical model of a political market in which a multi-activity governmental unit practices commodity bundling in order to advance the interests of the setter. Two institutional structures are considered, each involving a different voting process or set of electoral constraints and, hence, a different form of commodity bundling. The paper explores the impact of this form of monopoly power on such policy outcomes as the governmental unit's total budget, its budgetary mix, and the distribution of net benefits from collective action.

Suggested Citation

  • Robert J. Mackay & Carolyn L. Weaver, 1983. "Commodity Bundling and Agenda Control in the Public Sector," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 98(4), pages 611-635.
    • Handle: RePEc:oup:qjecon:v:98:y:1983:i:4:p:611-635.
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    File URL: http://hdl.handle.net/10.2307/1881780
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    Cited by:

    1. Knoll Bodo & Koenig Andreas, 2011. "Leviathan Europa – Stärkung der Nationalstaaten und der EU durch konstitutionelle Schranken?," Zeitschrift für Wirtschaftspolitik, De Gruyter, vol. 60(2), pages 127-145, August.
    2. Dean Lacy & Emerson M.S. Niou, 2000. "A Problem with Referendums," Journal of Theoretical Politics, , vol. 12(1), pages 5-31, January.
    3. Cheryl L. Eavey & Gary J. Miller, 1995. "Subcommittee Agenda Control," Journal of Theoretical Politics, , vol. 7(2), pages 125-156, April.
    4. Daniel E. Ingberman & Robert P. Inman, 1987. "The Political Economy of Fiscal Policy," NBER Working Papers 2405, National Bureau of Economic Research, Inc.
    5. Fredrik Carlsen, 1998. "Central Regulation of Local Authorities," Public Finance Review, , vol. 26(4), pages 304-326, July.
    6. Saiz, Albert, 2011. "The median voter didn't show up: Costly meetings and insider rents," Regional Science and Urban Economics, Elsevier, vol. 41(5), pages 415-425, September.
    7. Rosen Valchev & Antony Davies, 2009. "Transparency, Performance, and Agency Budgets: A Rational Expectations Modeling Approach," Working Papers 2009-004, The George Washington University, Department of Economics, H. O. Stekler Research Program on Forecasting.
    8. Shaheen Naseer, 2019. "Public Spending, Quality of Bureaucracy and Economic Growth: A Theoretical Analysis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 58(2), pages 203-221.

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