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Voice or Public Sector Management? An Empirical Investigation of Determinants of Public Sector Performance based on a Survey of Public Officials

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  • Daniel Kaufmann

    (The World Bank)

  • Gil Mehrez

    (IMF)

  • Tugrul Gurgur

    (The World Bank)

Abstract

Drawing on an in-depth governance micro-survey of public officials within a country, we address empirically the question of the relative importance of the various determinants of governance. We investigate the causes of poor governance, and show that commonly made inferences about policy based on simple correlation can be highly misleading, because the high correlation between the various governance (and public sector management) determinants, as well as the endogeneity in these variables. We find that undue emphasis may have been given in previous work to a number of conventional public sector management variables (such as civil servant wages, internal enforcement of rules, autonomy of agency by fiat, etc.), while undermining the priority due to more ‘external’ (to public sector management) variables, such as external voice, transparency, and politicization. The latter set of ‘voice’-related variables has larger affect on the quality of service and corruption than the more traditional public sector management type of variables. Further work drawing in depth on country-specific surveys in other settings is warranted to ascertain with more confidence whether a shift towards more prominence to transparency and ‘voice’-type of variables is needed, backstopping the results for Bolivia in this paper.

Suggested Citation

  • Daniel Kaufmann & Gil Mehrez & Tugrul Gurgur, 2003. "Voice or Public Sector Management? An Empirical Investigation of Determinants of Public Sector Performance based on a Survey of Public Officials," Econometrics 0308004, EconWPA.
  • Handle: RePEc:wpa:wuwpem:0308004
    Note: Type of Document - Acrobat PDF; pages: 45
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    References listed on IDEAS

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    Cited by:

    1. Richard M. Bird & Jorge Martinez-Vazquez & Benno Torgler, 2014. "Societal Institutions and Tax Effort in Developing Countries," Annals of Economics and Finance, Society for AEF, vol. 15(1), pages 301-351, May.
    2. Benno Torgler & Friedrich Schneider, 2007. "Shadow Economy, Tax Morale, Governance and Institutional Quality: A Panel Analysis," CREMA Working Paper Series 2007-02, Center for Research in Economics, Management and the Arts (CREMA).
    3. Torgler, Benno & Schneider, Friedrich, 2009. "The impact of tax morale and institutional quality on the shadow economy," Journal of Economic Psychology, Elsevier, vol. 30(2), pages 228-245, April.
    4. William Easterly, 2002. "The cartel of good intentions: The problem of bureaucracy in foreign aid," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 5(4), pages 223-250.
    5. Benno Torgler & Christoph A. Schaltegger, 2005. "The Determinants of Political Discussion: How Important are Audit Courts and Local Autonomy?," CREMA Working Paper Series 2005-28, Center for Research in Economics, Management and the Arts (CREMA).
    6. World Bank Group, 2014. "Strategic Framework for Mainstreaming Citizen Engagement in World Bank Group Operations," World Bank Publications, The World Bank, number 21113, July.
    7. Schaltegger, Christoph A. & Torgler, Benno, 2007. "Government accountability and fiscal discipline: A panel analysis using Swiss data," Journal of Public Economics, Elsevier, vol. 91(1-2), pages 117-140, February.
    8. Leonid Peisakhin, 2012. "Transparency and Corruption: Evidence from India," Journal of Law and Economics, University of Chicago Press, vol. 55(1), pages 129-149.
    9. repec:gam:jsusta:v:9:y:2017:i:4:p:631-:d:96011 is not listed on IDEAS

    More about this item

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C42 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Survey Methods
    • C81 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Microeconomic Data; Data Access
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism
    • H4 - Public Economics - - Publicly Provided Goods
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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