Citizens' Information and the Size of Bureaucracy
This paper analyzes, in a traditional public choice perspective, the political-bureaucratic relationship starting from the idea that citizens' information is a random variable whose distribution can change because of institutional elements. As in Niskanen's model, we assume that political preferences represent citizens’ preferences, but unlike the traditional theory we consider a stochastic political demand function whose variables are the quantity of the public good and a random variable representing the available citizens' information on the public good. Additionally, political competition as well as mass media competition can affect the distribution of the information. Using the Rothschild and Stiglitz (1970) theory, we show that the size of bureaucratic activity decreases as the dispersion of information among citizens increases, thus improving the efficiency of the system.
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.:
- BORDIGNON, Massimo & MINELLI, Enrico, .
"Rules transparency and political accountability,"
CORE Discussion Papers RP
1522, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Aghion, Philippe & Tirole, Jean, 1997.
"Formal and Real Authority in Organizations,"
4554125, Harvard University Department of Economics.
- Aghion, Philippe & Tirole, Jean, 1994. "Formal and Real Authority in Organizations," IDEI Working Papers 37, Institut d'Économie Industrielle (IDEI), Toulouse.
- Philippe Aghion & Jean Tirole, 1994. "Formal and Real Authority in Organizations," Working papers 95-8, Massachusetts Institute of Technology (MIT), Department of Economics.
- Philippe Aghion & Jean Tirole, 1994. "Normal and Real Authority in Organizations," Working papers 94-13, Massachusetts Institute of Technology (MIT), Department of Economics.
- Varian, Hal R, 1985. " Divergence of Opinion in Complete Markets: A Note," Journal of Finance, American Finance Association, vol. 40(1), pages 309-17, March.
- Tirole, Jean, 1986. "Hierarchies and Bureaucracies: On the Role of Collusion in Organizations," Journal of Law, Economics and Organization, Oxford University Press, vol. 2(2), pages 181-214, Fall.
- Rothschild, Michael & Stiglitz, Joseph E., 1970. "Increasing risk: I. A definition," Journal of Economic Theory, Elsevier, vol. 2(3), pages 225-243, September.
- Martimort, David, 1996. "The multiprincipal nature of government," European Economic Review, Elsevier, vol. 40(3-5), pages 673-685, April.
- Bendor, Jonathan, 1988. "Formal Models of Bureaucracy," British Journal of Political Science, Cambridge University Press, vol. 18(03), pages 353-395, July.
When requesting a correction, please mention this item's handle: RePEc:pet:annals:v:9:i:1:y:2009:p:17-26. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Imola Driga)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.