Boadway, Robin; Horiba, Isao; Jha, Raghbendra - In: Public Choice 100 (1999) 3-4, pp. 157-84
Public services are often provided by lower level agencies that are funded by higher level government. Since markets for such services do not exist, normal pressures to minimize costs do not operate; indeed, usually these costs are unobservable. We study a principal-agent model which emphasizes...