Principals, Agents and the Economics of Accountability in the New Public Sector
Accounting, Auditing & Accountability Journal
ISSN: 0951-3574
Article publication date: 1 September 1993
Abstract
Examines the recent changes made to the public sector in the UK in the context of relevant economic models, including the principal‐agent model, public goods theory and the median voter model. Considers a number of possible justifications for the changes, including the emulation of the private sector as a model of accountability and efficiency, and increasing the accountability of the public sector. Finds major problems with each of these justifications, highlights other possible explanations for the changes, and emphasizes the importance of the concept of “residual loss” when monitoring and bonding processes are imperfect.
Keywords
Citation
Mayston, D. (1993), "Principals, Agents and the Economics of Accountability in the New Public Sector", Accounting, Auditing & Accountability Journal, Vol. 6 No. 3. https://doi.org/10.1108/09513579310042579
Publisher
:MCB UP Ltd
Copyright © 1993, MCB UP Limited