Accounting Auditing & Accountability Journal · 1993 · 111 citations · 0 references
Social SciencesEconomicsPublic AdministrationAgency TheoryPublic EconomicsPublic Sector ReformAccountabilityAgency CostsGovernance ReformPublic Administration ReformPublic GoodsPublic Sector EfficiencyAccountability In AdministrationAccountability In Public AdministrationMedian Voter EquilibriumMedian Voter ModelMedian Voter TheoryPrincipal-agent AccountabilityPublic Accountability MechanismsResidual Loss Allocation
Examines the recent changes made to the public sector in the UK in the context of relevant economic models, including the principal‐agent model, public goods theory and the median voter model. Considers a number of possible justifications for the changes, including the emulation of the private sector as a model of accountability and efficiency, and increasing the accountability of the public sector. Finds major problems with each of these justifications, highlights other possible explanations for the changes, and emphasizes the importance of the concept of “residual loss” when monitoring and bonding processes are imperfect.