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Making politicians and bureaucrats deliver: decentralization and interlinked tasks

  • Goyal, Ashima

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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File URL: http://mpra.ub.uni-muenchen.de/41416/1/MPRA_paper_41416.pdf
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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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  1. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change
    [Understanding the Process of Economic Change]
    ," Introductory Chapters, Princeton University Press.
  2. Tirole, Jean, 1994. "The Internal Organization of Government," Oxford Economic Papers, Oxford University Press, vol. 46(1), pages 1-29, January.
  3. Alesina, Alberto & Tabellini, Guido, 2008. "Bureaucrats or politicians? Part II: Multiple policy tasks," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 426-447, April.
  4. Fuhito Kojima, 2008. "Bureaucrats or Politicians? Comment," American Economic Review, American Economic Association, vol. 98(1), pages 561-62, March.
  5. Cooper, Russell & John, Andrew, 1988. "Coordinating Coordination Failures in Keynesian Models," The Quarterly Journal of Economics, MIT Press, vol. 103(3), pages 441-63, August.
  6. Alberto Alesina & Guido Tabellini, 2007. "Bureaucrats or Politicians? Part I: A Single Policy Task," Levine's Working Paper Archive 321307000000000870, David K. Levine.
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