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Delegation without Agency Loss? The Use of Performance Contracts in Danish Central Government

Bibliographic Data

ID6263939
AuthorsAnne Skorkjær Binderkrantz (0000-0002-5059-0251, Aarhus University), Jørgen Grønnegaard Christensen (Aarhus University)
Year2009
Volume22
Issue2
Pages263-293
Publication date2009-04-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueGovernance (JOURNAL)
Journal identifiersISSN: 0952-1895 • E-ISSN: 1468-0491
PublisherWiley (PUBLISHER • GB)
DOI10.1111/j.1468-0491.2009.01435.x
OpenAlexW2119209612
LanguageEN
Citations received9
References cited26

Performance contracts entered between ministerial departments and their agencies are used throughout the Danish central government. The article analyzes the use of performance contracting in 2005. The analysis draws on transaction cost theory and actor‐centered institutionalism, stressing the bargaining aspect of hierarchy and the importance of economic and political transaction costs. The analysis shows considerable variation in the content of performance demands. Ministries with different organizational designs use contracts in markedly different ways and agencies with a strong interface to individual citizens and businesses are more likely to meet demands regulating policy delivery and service levels. Further, contracts contain substantive clauses, the terms of which are largely assessable. It also shows that performance contracts only rarely specify demands related to cost efficiency within agencies. Many of these results are statistically significant, even though a general point is the wide variation in the implementation of performance contracts between individual ministries

Agency (philosophy · Business · Contracting out · Corporate governance · Danish · Database transaction · Delegation · Economics · Government (linguistics · Hierarchy · Industrial organization · Management · Market economy · Operations management · Political science · Politics · Principal–agent problem · Public economics · Service (business · Sociology · Transaction cost · Variation (astronomy · European Union Policy and Governance · Law · Public Administration · Public Policy and Administration Research · Social Policy and Reform Studies · Finance · Marketing

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Unique citing works9
Citations per year0.6
Citation span2011 - 2024 (14)
Citation velocityrecent
Highly citedNo
Citation typesNeutral: 9

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