This analysis reflects the presumption that the principal-agent relationship is central to an understanding of government spending. Our model's structure is adapted from Jack Hirshleifer's (1970) use of the state-preference theory of decision-making under uncertainty to delimit the information...

This article uses simple and self-contained optimal control theory and martingale methods to find optimal government expenditure consistent with present value balance and, implicitly sustainable saving, borrowing, and tax levels as well, since long-term sustainable paths are, in principle, not...

There are several reasons for the obscurity of the organizational process model. Perhaps the most important is the widespread acceptance of the standard economic model, which holds that spending outcomes are determined by the supply of and the demand for publicly provided goods and services and...