Public sector investment failures: theoretical contributions from new institutional and austrian economic theory
Journal of Public Budgeting, Accounting & Financial Management
ISSN: 1096-3367
Article publication date: 1 March 2006
Abstract
This paper illustrates how two contemporary economic traditions - New Institutional and Austrian economics - may be used to add insight into the organization and governance of public sector investment programs. When combined, these frameworks offer a theoretical foundation that may be used for purposes of assessing relative levels of agency and transactions costs within different institutional settings. The insights provided suggest that one option for reducing these costs is to “outsource” the public sector investment function. The theories explored in the paper are not panacea for dealing with agency and transaction costs, but they do draw attention to key institutional characteristics that influence their size.
Citation
Stalebrink, O.J. and Sacco, J.F. (2006), "Public sector investment failures: theoretical contributions from new institutional and austrian economic theory", Journal of Public Budgeting, Accounting & Financial Management, Vol. 18 No. 3, pp. 351-375. https://doi.org/10.1108/JPBAFM-18-03-2006-B005
Publisher
:Emerald Publishing Limited
Copyright © 2006 by PrAcademics Press