Public Administration & Public Management: The Principal-Agent Perspective

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ISBN: 9780415370165 | 0415370167
Cover: Nonspecific Binding
Copyright: 11/14/2005

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Government in any society delivers a large number of services and goods to its population. To get the job done, government needs public management in order to steer its resources--employees, money and laws--into policy outputs and outcomes. In a well-ordered society the teams who work for the state deliver under a rule of law framework--public administration. Public Administration and Public Managementprovides a new perspective on the public sector by offering a concise and comprehensive analysis of what it is and how it operates. This book includes such issues as: The Principal-Agent Framework and the Public Sector Public Principals and their Agents The Economic Reasons of Government Public Organization, Incentives and Rationality in Government The Essence of Public Administration: Legality and the Rule of Law Public Policy Criteria: The Cambridge and Chicago Positions

List of Figures

List of Tables

Preface

Introduction: the public and the private sectors

(3)

Need for public administration or public management

(1)

New Public Management: the general framework

(8)

Public management: merit and accountability

(1)

Public administration and public policy: a contracting perspective

(2)

Citizen's charters

(2)

Osborne's trilogy: a critique of the management philosophy of David Osborne

(9)

Conclusion

(1)

Appendix

(2)

The principal--agent framework and the public sector

(19)

Introduction

(1)

Why is the principal--agent framework popular?

(1)

Principals and agents: contracting as the essence of interaction

(2)

Incentives: how is egoism and social value recognised?

(1)

Principal--agent games

(4)

The principal--agent approach and the public sector

(3)

Management, public organisation and the principal--agent model

(3)

Public management and the politics/administration separation

(2)

Conclusion

(2)

Public principals and their agents

(29)

Introduction

(1)

From public finance to public management

(2)

The public principal

(2)

Social priorities as incentives

(4)

The fundamental agency problem in the public sector

(1)

Public sector agency: hidden action

(2)

Public sector agency: hidden knowledge

(1)

The two main solutions to the agency problems

(2)

Budgeting: the principal--agent perspective

(12)

Conclusion

(2)

The economic reasons for government

(23)

Introduction

(1)

Imperium and patrimonium

(2)

Crown jewels are not merely regalia

(1)

Eminent domain

(1)

Public goods and merit goods

(2)

Public necessity

(1)

Government as employees, money and law

(1)

Transaction costs and coordination

(1)

The enforcement mechanism and groups

(2)

Contractarian schools

(4)

Contracting in the public sector

(1)

The two kinds of transaction costs

(2)

The state and transaction costs

(3)

Transaction costs and fairness

(1)

Conclusion

(1)

Public organisation, incentives and rationality in government

100

(25)

Introduction

100

(1)

Rational public administration

100

(2)

Rationality in policy-making: will transitivity prevail?

102

(2)

Whose rationality in policy implementation?

104

(2)

Micro rationality versus macro rationality

106

(1)

Cooperation and coordination failures

107

(6)

The state: arena and organisation

113

(1)

Politics as the arena of policy-making

114

(1)

Public organisation as the implementation of policy

114

(1)

Political organisation: three basic types

115

(3)

The basic logic of public organisation

118

(4)

Macro and micro rationality and the non-profit organisations

122

(1)

Conclusion

123

(2)

The essence of public administration: legality and rule of law

125

(23)

Introduction

125

(1)

A thin legal concept of legal--rational authority

126

(1)

What is legitimacy?

127

(1)

Legality

128

(2)

Rights

130

(1)

Separation of powers

131

(1)

Publicity and redress

132

(1)

Legal review

133

(2)

The Hayek argument about law and rule of law

135

(4)

Democracy and rule of law

139

(2)

Growing demand for rule of law: judicialisation

141

(1)

Public administration and reregulation: a principal--agent perspective

142

(3)

Conclusion

145

(2)

Appendix

147

(1)

Public policy criteria: the Cambridge and Chicago positions

148

(23)

Introduction

148

(1)

The Chicago revolution: the ends or means of policy?

149

(1)

The world according to the Chicago gospel: the key hypotheses

150

(4)

Law and markets: what is the role of the state?

154

(5)

Chicago School implications

159

(4)

The world according to the Cambridge gospel: the relevance of social policy

163

(3)

Conclusion

166

(1)

Notes

167

(1)

Appendix: Social spending in OECD countries

167

(4)

Public teams are different from private teams

171

(19)

Introduction

171

(1)

Macro view of public organisation

172

(2)

Country-specific models of public organisation

174

(2)

Public teams: people and rules

176

(1)

Micro perspective on public organisation

177

(7)

Limits of new managerialism

184

(2)

Public organisation and public teams

186

(2)

Conclusion

188

(2)

Public Firms

190

(22)

Introduction

190

(1)

The contradictions inherent in the public enterprise

191

(1)

Public enterprises and the economy

192

(6)

Behavioural consequences of the new system

198

(8)

Overall assessment of 'like to like'

206

(3)

Conclusion

209

(3)

Public insurance

212

(16)

Introduction

212

(1)

The elements of pension systems

213

(1)

The organisation of public insurance

214

(3)

Challenges: adequacy, coverage and sustainability

217

(3)

The economic dependency ratio

220

(3)

The future: avoiding deficits or reneging?

223

(1)

From welfare to workfare: the moral hazard perspective

223

(2)

Social security and social policy

225

(1)

Conclusion

226

(2)

What is public management policy?

228

(22)

Introduction

228

(1)

NPM: country-specific models or experiments

229

(4)

Guiding principles of public management policy

233

(2)

Towards a post-modern public organisation

235

(1)

Public management reform: what is the drive?

235

(4)

The public management function

239

(4)

Core public management functions

243

(2)

Does public management matter?

245

(3)

Conclusion

248

(2)

Conclusion: contracting in the public sector

250

(13)

Introduction

250

(1)

The state and transaction costs

251

(5)

Reasonable and unreasonable reform attempts

256

(2)

Conclusion

258

(5)

Bibliography

263

(18)

Index

281

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Public Administration & Public Management: The Principal-Agent Perspective

Summary

Table of Contents

Supplemental Materials