Pure incentive schemes rely on agent self-interest, rather than more coercive control, to motivate subordinates. Yet most organizations, and in particular public agencies, rely very little on pure incentive contracts. Most organizations rely on the primarily coercive mechanisms of monitoring and...

This essay discusses an integrative economic theory that reconciles rank-order tournaments with the traditional public administration concern for accountability in government. Recent reforms have concentrated on organizational designs that flow from piece-rate approaches to employee compensation...

How does the informational role of interest groups interact with institutions in the political control of the bureaucracy? In 1992, Banks and Weingast argued that bureaucrats hold an informational advantage vis-a-vis political principals concerning variables with direct policy relevance, and...

The central question in modern regulatory states is how to balance the sword of public enforcement with the setting of incentives for firms to comply with the law - broadly, to pursue the public good - just because it is in their interest to do so. We assess the ability of the state to encourage...

I examine how the legislature and the president sequentially enable and constrain agencies in a tug-of-war over the exercise of bureaucratic discretion, partly in response to past political interventions. I provide evidence from a duration analysis of the U.S. Environmental Protection Agency's...

This essay examines the roles of competition, comparison, imitation, and punishment in the design of bureaucratic performance. Through a series of simulations, this essay examines how these elements - alone and in combination - drive both the performance and technology search paths of adaptive...

In contrast to principal-agency theory, the possibility of the political control of the bureaucracy depends on bureaucratic structure. In this paper, I argue that the functional decentralization of responsibility and authority for policy formulation and implementation involves a net loss of...

The canonical principal-agent problem involves a risk-neutral principal who must use incentives to motivate a risk-averse agent to take a costly, unobservable action that improves the principal's payoff. The standard solution requires an inefficient shifting of risk to the agent. This paper,...