Performance Funding in Federal Agencies: A Case Study of a Federal Job Training Program |
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| Authors: | Pascal Courty Gerald Marschke |
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| Affiliation: | Pascal Courty is an Assistant Professor of Economics at London Business School, Regent's Park, NW1 4SA, London, UK.; Gerald Marschke is an Assistant Professor of Public Administration and Policy and of Economics, University at Albany, State University of New York, Milne Hall 308, Albany, NY 12222. |
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| Abstract: | Our case study highlights important details that enter into developing performance contingent budgeting schemes—details that do not emerge in more general discussions of the subject—and shows how the handling of these details can be crucial to these schemes' success. We study a federal job training program that gives state and local decision makers discretion over the program's operation, but through performance funding holds them accountable for achieving specific objectives. We find that states' modifications to the scheme's construction produced over time highly individualized performance funding schemes that likely varied in their effectiveness. |
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