Time consistency and bureaucratic budget competition

Arbeitspapier

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 labor, 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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1791

Classification and Topics

• Classification: Wirtschaft ; Structure, Scope, and Performance of Government ; National Budget; Budget Systems ; Public Administration; Public Sector Accounting and Audits
• Subject: Öffentlicher Dienst ; Kündigungsschutz ; Personalbedarf ; Öffentlicher Haushalt ; Verwaltungskosten ; Zeitkonsistenz ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Kessing, Sebastian G. ; Konrad, Kai A.
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/25836
• Last update: 10.03.2025, 11:45 AM CET