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Agency costs in the government may include the likes of government wasting taxpayers money to suit their own interest, which may conflict with the general tax-paying public who may want it used elsewhere on things such as health care and education. The literature however mainly focuses on the above categories of agency costs.
In economic theory, the principal-agent approach (also called agency theory) is part of the field contract theory. [36] [37] In agency theory, it is typically assumed that complete contracts can be written, an assumption also made in mechanism design theory. Hence, there are no restrictions on the class of feasible contractual arrangements ...
Public finance refers to the monetary resources available to governments and also to the study of finance within government and role of the government in the economy. [1] Within academic settings, public finance is a widely studied subject in many branches of political science , political economy and public economics .
The advantage of the benefit theory is the direct correlation between revenue and expenditure in a budget. It approximates market behaviour in the allocation procedures of the public sector. Although simple in its application, the benefit theory has difficulties: [9] It limits the scope of government activities
Regulatory capture theory has a specific meaning, that is, an experience statement that regulations are beneficial for producers in real life. So it is essentially not a true regulatory theory. Although the analysis results are similar to the Stigler model, the methods are completely different.
The interests of the agency's constituency (the interest groups) are met, while the needs of consumers (which may be the general public) are passed over. [ 20 ] That public administration may result in benefiting a small segment of the public in this way, may be viewed as problematic for the popular concept of democracy if the general welfare ...
The agency has used blog posts, vague guidance, and enforcement actions to establish policies that deem common practices to be a risk to consumers.
Bureaucratic drift in American political science is a theory that seeks to explain the tendency for bureaucratic agencies to create policy that deviates from the original mandate. [ 1 ] [ 2 ] [ 3 ] The difference between a bureaucracy's enactment of a law and the legislature's intent is called bureaucratic drift.