✦ LIBER ✦

The determination of local public expenditures and the principal and agent relation: A case study

✍ Scribed by Sharon Bernstein Megdal

Publisher: Springer US
Year: 1983
Tongue: English
Weight: 977 KB
Volume: 40
Category: Article
ISSN: 0048-5829
DOI: 10.1007/bf00174997

No coin nor oath required. For personal study only.

✦ Synopsis

The principal and agent relationship is important in the public sector. There, elected or appointed representatives act on behalf of the citizens of their jurisdictions. This paper examines the importance of the budget referendum, which allows the principals to approve or disapprove the proposal of a set of agents, in the context of local public expenditure decisions. We test the null hypothesis that the institution of referendum, when compared to a nonreferendum institution, does not lead to significantly different expenditure behavior. * I would like to thank R. C. Vars and Gordon Tullock for some helpful comments and suggestions.

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