Bureaucracy,inefficiency, and time

This paper examines the bureaucrat's choice between devoting resources to economic rents (organizational slack) and maximizing the budget of the agency. A new model of bureaucracy is developed using utility rather than a demand function as its foundation. It is shown that increases in income alter the slack-budget constraint to favor organizational slack over budget-maximization. Modern federal bureaucracies in the U.S. are predicted to be slack-maximizing and X-inefficient.