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- W3023170435 abstract "This chapter explains how to maximize budgets. If bureaucrats want to maximize their influence, prestige, and income, they can do so most successfully by maximizing the number of their subordinates and the amount of money they can decide upon by maximizing their budget. The revenue-cost constraint implies a twofold political influence on the bureau. Given the revenue-cost constraint, the market equilibrium conditions, and its technology, the mixed bureau can maximize its budget that consists of revenue plus grant. A bureaucrat adopts a cost-benefit attitude and takes the political marginal valuation of output as a sort of external social benefit that reduces the marginal production costs. The mixed bureau is a public enterprise that sells its goods or services at prices that do not cover costs and expects some ministry to cover its deficit. The more sensitively the achievable budget reacts to additional endowments of labor, the larger is the influence of production costs on public pricing. The political considerations depend on the demand–cost balance of the bureau." @default.
- W3023170435 created "2020-05-13" @default.
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- W3023170435 date "1989-01-01" @default.
- W3023170435 modified "2023-09-25" @default.
- W3023170435 title "MAXIMIZING BUDGETS" @default.
- W3023170435 doi "https://doi.org/10.1016/b978-0-444-88507-4.50022-x" @default.
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