A Contractual Approach to Multi-level Governance

This chapter develops an analytic framework for understanding how the economic theory of contracts applies to multi-level governance and what these theories suggest with respect to the selection of a contractual approach. It begins with an overview of the relevant theories, presents an analytic typology of contracts, and assesses the most effective contract design for different co-ordination contexts. The analytic framework developed in this chapter is applied to each of the case studies in subsequent chapters.