The Budget‐Minimizing Bureaucrat? Empirical Evidence from the Senior Executive Service

In a representative democracy, we assume the populace exerts some control over the actions and outputs of government officials, ensuring they comport with public preferences. However, the growth of the fourth branch of government has created a paradox: Unelected bureaucrats now have the power to affect government decisions (Meier 1993; Rourke 1984; Aberbach, Putnam, and Rockman 1981).
In this article, I rely on two competing theories of bureaucratic behavior-representative-bureaucracy theory and Niskanen's budget-maximization theory-to assess how well the top ranks of the federal government represent the demands of the citizenry. Focusing on federal-spending priorities, I assess whether Senior Executive Service (SES) members mirror the attitudes of the populace or are likely to inflate budgets for their own personal gain. Contrary to the popular portrayal of the budget-maximizing bureaucrat (Niskanen 1971), I find these federal administrators prefer less spending than the public on most broad spending categories, even on issues that fall within their own departments' jurisdictions. As such, it may be time to revise our theories about bureaucratic self-interest and spending priorities.     

Street-Level Bureaucrats’ Attitude toward Clients: A Study of Work Group Influence in the Dutch and Belgian Tax Administration

Abstract

Classic street-level bureaucracy literature has suggested that individual bureaucrats are shaped by their work group. Work group colleagues can impact how bureaucrats perceive clients and how they behave toward them. Building on theories of work group socialization, social representation, and social identification, we investigate if and how the attitude of individual street-level bureaucrats toward clients is shaped by the client-attitude of the bureaucrat’s work group colleagues. We also test whether this relation is dependent on conditions of attitudinal homogeneity and perceived cohesion of the work group. Results of a survey among street-level bureaucrats in the Dutch and Belgian tax administration (1245 respondents from 210 work groups) suggest that different mechanisms underlie the work group’s impact on the individual street-level bureaucrat in this specific attitude. The analysis furthermore reveals that work groups have a limited impact on the individual’s client-attitude. Theoretical and practical implications of these findings are discussed.     

The Role of the Public Manager: Loyalty,Autonomy or Advocacy?

It is argued that the role of the public bureaucracy must be analysed along at least two dimensions. One dimension concerns the relationship between politicians and bureaucrats, i.e. the possible conflict between political loyalty and autonomy. The other dimension concerns the relationship between citizens and bureaucracy, i.e. the possible conflict between openness towards citizens and bureaucratic closedness. With the aid of data from a survey of 407 agency heads in Norwegian municipalities, it was possible to group different bureaucrats along the two dimensions. Four categories emerged from the analysis; a political bureaucrat, an autonomous bureaucrat, the "classic" administrator and the "linking pin". An attempt to predict group membership was made using variables on the societal, organizational as well as individual levels. This attempt was only partially successful, indicating that there is a need for other independent variables to explain group membership.     

A supervisor like me: Race,representation, and the satisfaction and turnover decisions of public sector employees

Studies of race representation in public organizations illustrate the importance of bureaucrat race in determining client‐level outcomes. Building “upward” from this research, this study examines how supervisor race impacts outcomes for street‐level bureaucrats using data from a nationally representative sample of public schools. Employing multiple estimation methods, we find that, consistent with the predictions of representation theory, teachers report higher job satisfaction and turn over less often when supervised by an own‐race principal. We also find that race congruence impacts the tangible and intangible organizational benefits teachers receive, and, moreover, that race congruence impacts white and African American employees differently. Most troubling, we find evidence that black teachers earn substantially less in supplemental pay when they work for a white principal, even when compared to white teachers in the same school. © 2011 by the Association for Public Policy Analysis and Management.     

Technical progress in bureaucracies

In this paper we raise the question whether in bureaucracies incentives are existing to implement technical progress into public goods production as it may be observed in the private sector. Therefore the well-known models of the theory of bureaucracy will be enhanced by technical progress modelled as process innovations. Depending on bureaucrats' preferences two results can be obtained: (a) If bureaucrats maximize their budget or if output or the classical production factors enter their utility function, R&D will be used efficiently due to cost reductions increasing the bureaucrats' budget or utility; (b) if bureaucrats prefer R&D as an end itself, they will use this factor like other factors by more than the efficient amount. In both cases an allocative inefficient output of the public good is produced. As a consequence society cannot benefit from gains by technical progress since net social welfare is appropriated totally by bureaucrats, even if it is increased by R&D-efforts.     

Fault Lines: The Effects of Bureaucratic Power on Electoral Accountability

This article introduces a new explanation for why citizens may fail to vote based on government performance. We argue that when politicians have limited capacity to control bureaucrats, citizens will not know whether government performance is a good signal of the incumbent's quality. We develop a selection model of elections in which policy is jointly determined by a politician and a bureaucrat. When politicians have incomplete power over policy, elections perform worse at separating good and bad types of incumbents. We test the theory's predictions using survey experiments conducted with nearly 9,000 citizens and local officials in Uganda. We find that citizens and officials allocate more responsibility to politicians when they are perceived as having more power relative to bureaucrats. The allocation of responsibility has electoral consequences: When respondents believe that bureaucrats are responsible for performance, they are less likely to expect that government performance will affect incumbent vote share.     

Policy Positions of Bureaucrats at the Front Lines: Are They Susceptible to Strategic Communication?

It is well established that bureaucrats’ implementation of policies is influenced by their own policy positions, that is, their attitudes toward the given policies. However, what affects the policy positions of bureaucrats? This article focuses on whether the policy positions of bureaucrats at the front lines of government are susceptible to frames and cues embedded in communication. Based on the notion that bureaucrats often adhere to certain professional norms when developing their attitudes toward policies, the authors hypothesize that communication frames and cues that align policies with such norms move bureaucrats’ policy positions in favor of the policy. Results of four studies in European and American settings among mid‐ and street‐level bureaucrats show support for the hypothesized effect. They also show that aligning policies with dimensions outside professional norms is ineffective, possibly even producing opposite effects.     

Enhancing responsiveness and consistency: Comparing the collective use of discretion and discretionary room at inspectorates in England and the Netherlands

Discretion used to be considered a feature of individuals, but growing literature shows that it has collective features as well. To develop an understanding of the individual and cooperative work of inspectors in using discretion and the discretionary room granted to them, we compared two inspectorates: the Care Quality Commission (CQC) in England and the Joint Inspectorate for Youth (JIY) in the Netherlands. Our analysis reveals that inspectors engage with colleagues, managers, and stakeholders to include other perspectives, gain mandate, and broaden their repertoire. At the CQC, inspectors use their discretion collectively; on their own initiative, they involve others in balancing and interpreting rules to reach judgments. At the JIY, teamwork is central and regulatory teams are granted collective discretionary room. We argue that collective work permits both responsiveness and consistency. In studying the judgments of inspectors and other street‐level bureaucrats, it is vital to look at collective work and how it combines consistency and responsiveness.     

The effects of multiple objectives in the theory of public sector supply

This paper incorporates objectives of both legislators and bureaucrats in a model of public sector decisionmaking. Existing models assume that either bureaucrats control production information and decisions, (Niskanen-type models) or legislators control production decisions (legislative models). My model explicitly incorporates imperfect agent behavior and corresponding preferences of both legislators and bureaucrats to reflect the bilateral nature of appropriations. The analysis shows that output levels generally differ from politically and socially efficient levels and depend on the relative weights of legislative and bureaucratic interests. Accordingly, Niskanen-type and legislative models are viewed as special cases of this more general approach.     

Environmental Protection Versus Economic Development: A False Trade‐Off?

Is a trade‐off between the social benefits of regulation and the economic benefits of development inevitable? We argue that environmental regulation may deter economic growth in some contexts, however, in other contexts the benefits of regulation may be obtained with little or no economic loss. We develop an explanation of the economic impacts of state environmental policy based on a model of public influence on private resource allocation decisions. In this model, we assume utility‐maximizing firms will make investment choices based upon the projected profits on their investments and their willingness to accept the risk associated with the investments. We assert that state policies and administrative institutions influence perceptions of risk by increasing or decreasing uncertainty over future environmental policy and influence return on investments at particular locations by affecting firm‐level production costs. Our results confirm that certain administrative arrangements for environmental regulation may enhance, rather than impede, economic development.     

Bureaucratic expertise,overconfidence, and policy choice

Classic theory on bureaucracy suggests that one primary source of bureaucratic power in public administration and the policy‐making process derives from bureaucratic issue‐specific expertise. Studies in psychology and behavioral economics suggest that experienced experts tend to be overconfident in estimating their expertise, but few researchers have examined whether experienced bureaucrats are prone to overconfidence and, if so, how overconfidence may correlate with their policy choice. Drawing on past theoretical and empirical literature, this study is the first to investigate these questions by using survey data collected from 579 officials in various agencies related to climate change mitigation and adaptation. Our analyses demonstrate that (a) the level of issue‐specific expertise perceived by individual bureaucrats is positively associated with their work experience/job relevance to climate change, (b) more experienced bureaucrats tend to be more overconfident in assessing their expertise, and (c) overconfidence, independently of sociodemographic characteristics, attitudinal factors and political ideology, correlates positively with bureaucrats’ risk‐taking policy choices.     

Understanding Street‐Level Bureaucrats' Decision Making: Determining Eligibility in the Social Security Disability Program

Personal interactions between clients and street‐level bureaucrats are significant in explaining why street‐level bureaucrats behave as they do. Not all bureaucracies that apply program rules to individuals, however, engage face‐to‐face with their clientele. As more intake procedures are automated, such “one‐on‐one” encounters decrease. The author generates and tests hypotheses about frontline bureaucratic decision making in the Social Security Disability program, by applying bounded rationality theory. The findings show that eligibility decisions by street‐level bureaucrats are affected by their adherence to subsets of agency goals and perceptions of others in the governance system. How quickly they make decisions also has an impact. There is no evidence that the way in which bureaucrats evaluate clients explains their decisions when they lack face‐to‐face contact.     

Influencing Policy at the Top of the Federal Bureaucracy: A Comparison of Career and Political Senior Executives

Although we commonly assume that bureaucrats influence the policies which govern public behavior, we know very little about the individuals who occupy executive positions in the federal bureaucracy. Following the creation of the Senior Executive Service (SES) in 1978, the Office of Personnel Management (OPM) published guidelines detailing the skills and responsibilities required among both career and noncareer members of the SES. Although scholars have focused much attention on relations between these two groups within the federal bureaucracy, their day-to-day responsibilities remain understudied. This study reports results of a survey that was administered to 1,000 members of the Senior Executive Service to determine whether career and noncareer members of the SES have significantly different job responsibilities. Although both groups perform a variety of activities which provide them with numerous avenues to affect government policy, the research findings indicate that noncareer executives are more engaged in carrying out political liaison tasks and that career executives have slightly greater personnel responsibilities.     

Does Public Service Motivation Lead to Budget Maximization? Evidence from an Experiment

ABSTRACT

One of the most enduring theories in public management is Niskanen's model of the budget-maximizing bureaucrat. While popular, the image of bureaucrats relentlessly advocating for larger budgets has been frequently attacked. A chief criticism is that the assumption of self-interest does not align with budget maximization, since bureaucrats have little direct way to benefit from larger budgets. A more plausible assumption that offers a stronger causal logic for maximization behavior is that bureaucrats are motivated to help others. If they believe that spending on public goods is beneficial to society, public employees may be likely to advocate for larger budgets. Using vignette-experiment methodology, this article finds that individuals with higher levels of public service motivation do not advocate for significantly higher budgets. The results undercut an alternative theoretical means to support Niskanen's original theory, thereby further undermining the budget maximization model.

[Supplementary material is available for this article. Go to the publisher's online edition of International Public Management Journal for the following free supplemental resource: Survey Text with Vignettes.]     

The flypaper effect and competition in the local market for public goods

In this paper, we explore how the ability of bureaucrats to extract resources from their community may be limited by competition in the local market for public goods. Specifically, we examine intergovernmental aid as a resource bureaucrats seek to control. Intergovernmental aid has been found to be more stimulative of local government expenditures than predicted by neo-classical economic theory. In this research, the ‘flypaper effect’ is used as an indicator of the ability of bureaucrats to control local resources in excess of local demand and preferences. We empirically relate variation in the flypaper effect to the extent of competition in the local market for public goods. Competition does not consistently limit the flypaper effect. The implications of this finding for theories of competition in the local market for public goods are then discussed.     

Serving many masters: Public accountability in private policy implementation

In recent decades, the introduction of market principles has transformed public service delivery into a hybrid. However, little is known about how these changes are reflected in the attitudes of private implementing agents: The hybridization literature neglects individuals, and street‐level bureaucracy research has disregarded hybridization. This article extends Hupe and Hill's ( 2007 ) accountability regimes framework to introduce the market as an additional accountability regime alongside state, profession, and society. Using a configurational approach, the article explores how public and private food safety inspectors in Switzerland perceive the multiple norms for behavior stemming from their environment. Results suggest that the plural accountabilities of for‐profit street‐level bureaucrats can increase the dilemmas involved in their work. Under certain circumstances, for‐profit street‐level bureaucrats have particular difficulties reconciling rule pressure with market incentives and client demands. The extended accountability regimes framework fruitfully captures such dilemmas and helps identify suitable governance responses.     

Bureaucratic choice and nonoptimal provision of public goods: Theory and evidence

Local governments' allocation decisions are modeled in the context of a slack maximizing bureaucrat who produces public goods according to a production function that includes both provision and the constituents' socio-economic characteristics. To gain a better understanding of the determinants of slack, comparative statics and an empirical study of Illinois municipalities are conducted. The indirect output distance function provides efficiency scores upon which we regress several variables, representing socio-economic characteristics, costs and competition measures. We find that slack or inefficient behavior is associated with richer communities, lower education levels and a lack of competition for residents among municipalities.     

How street‐level bureaucrats become policy entrepreneurs: The case of urban renewal

Under what conditions will street‐level bureaucrats act as policy entrepreneurs? Drawing on the case of social workers working with disadvantaged populations in the context of urban renewal in Israel, we suggest a framework for addressing this question. The research contributes to the literature of public administration and policy both by analyzing the strategies these entrepreneurs adopt to increase their influence on policy design and by proposing that the combination of perceptions of an acute crisis situation, lack of effective knowledge in the area, and the demand for innovation and activism leads street‐level bureaucrats to adopt innovative strategies aimed at influencing policy.     

Not Just Parliamentary 'Cowboys and Indians': Ministerial Responsibility and Bureaucratic Drift

A strict interpretation of the doctrine of individual ministerial responsibility requires that the minister alone bear public responsibility for her department's actions. Critics charge that it is not sensible to hold a mminister solel responsible for departmental errors when government departments are so large and complex, and senior bureaucrats so powerful in their own right; senior bureaucrats should be made directly accountable to Parliament. The paper uses a game theoretic model to show that this criticism is misguided. To the extent that politicians more effectively police the bureaucracy when they are governed by a doctrine of ministerial responsibility than when they are not, the doctrine strengthens accountability. Much of the doctrine's force comes from the threat of ministerial resignation, but the opportunities that the doctrine creates for opposition parties to embarrass the government also contribute to its efficacy.