The simple analytics of slack-maximizing bureaucracy

Using a utility-based graphical model of bureaucratic choice, this paper develops four empirical predictions from the theory of slack-maximizing bureaucracy. These predictions are compared to those resulting from the Niskanen budget-maximizing model of bureaucracy. Slack-maximizing and budget-maximizing bureaucracies are similar in their response to changes in cost and in their generation of flypaper effects, but they differ in their responses to matching and lump-sum grants.