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Time Consistency and Bureaucratic Budget Competition

Bibliographic Data

ID9703392
AuthorsKai A Konrad (0000-0002-2225-2271, WZB Berlin Social Science Center), Sebastian G Kessing (Social Science Research Center Berlin (WZB) and Free University of Berlin)
Year2008
Volume118
Issue525
Pages1-15
Publication date2008-01-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueThe Economic Journal (JOURNAL)
Journal identifiersISSN: 0013-0133 • E-ISSN: 1468-0297
PublisherOxford University Press (OUP) (PUBLISHER)
DOI10.1111/j.1468-0297.2007.02101.x
OpenAlexW2114403072
LanguageEN
Citations received8
References cited19

High employment protection in the public sector results in strategic over-employment if government divisions compete for budgets in a dynamic setting. Bureaucrats who are interested in maximising their divisions' output employ excess labour, since this induces the sponsor to provide complementary inputs in the future. Restrictions on hiring decisions in the public sector can be regarded as provisions to reduce strategic hiring. We also provide evidence from a survey of decision makers in a public sector bureaucracy with very high employment protection. The results confirm that decision makers are aware of the strategic effects of their hiring decisions on budget allocation. Copyright 2008 The Author(s). Journal compilation Royal Economic Society 2008

Bureaucracy · Business · Competition (biology · Consistency (knowledge bases · Economics · Economy · Government (linguistics · Labour economics · Political science · Politics · Public economics · Public sector · Fiscal Policies and Political Economy · Fiscal Policy and Economic Growth · Local Government Finance and Decentralization

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Unique citing works8
Citations per year0,5
Citation span2010 - 2023 (14)
Citation velocityhistorical
Highly citedNo
Citation typesNeutral: 7
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