Public sector rationing and private sector selection [paper accepted and forthcoming in Journal of Public Economic Theory]

We study the interaction between nonprice public rationing and prices in the private market. Under a limited budget, the public supplier uses a rationing policy. A private firm may supply the good to those consumers who are rationed by the public system. Consumers have different amounts of wealth, and costs of providing the good to them vary. We consider two regimes. First, the public supplier observes consumers' wealth information; second, the public supplier observes both wealth and cost information. The public supplier chooses a rationing policy, and, simultaneously, the private firm, observing only cost but not wealth information, chooses a pricing policy. In the first regime, there is a continuum of equilibria. The Pareto dominant equilibrium is a means-test equilibrium: poor consumers are supplied while rich consumers are rationed. Prices in the private market increase with the budget. In the second regime, there is a unique equilibrium. This exhibits a cost-effectiveness rationing rule; consumers are supplied if and only if their costbenefit ratios are low. Prices in the private market do not change with the budget. Equilibrium consumer utility is higher in the cost-effectiveness equilibrium than the means-test equilibrium [Authors]

Work motivation and pro-social behavior in the delivery of public services : theoretical and empirical insights

This Ph.D. dissertation seeks to study the work motivation of employees in the delivery of public services. The questioning on work motivation in public services in not new but it becomes central for governments which are now facing unprecedented public debts. The objective of this research is twofold : First, we want to see if the work motivation of employees in public services is a continuum (intrinsic and extrinsic motivations cannot coexist) or a bi-dimensional construct (intrinsic and extrinsic motivations coexist simultaneously). The research in public administration literature has focused on the concept of public service motivation, and considered motivation to be uni-dimensional (Perry and Hondeghem 2008). However, no study has yet tackled both types of motivation, the intrinsic and extrinsic ones, in the same time. This dissertation proposes, in Part I, a theoretical assessment and an empirical test of a global work motivational structure, by using a self-constructed Swiss dataset with employees from three public services, the education sector, the security sector and the public administrative services sector. Our findings suggest that work motivation in public services in not uni-dimensional but bi-dimensional, the intrinsic and extrinsic motivations coexist simultaneously and can be positively correlated (Amabile et al. 1994). Our findings show that intrinsic motivation is as important as extrinsic motivation, thus, the assumption that employees in public services are less attracted by extrinsic rewards is not confirmed for this sample. Other important finding concerns the public service motivation concept, which, as theoretically predicted, represents the major motivational dimension of employees in the delivery of public services. Second, the theory of public service motivation makes the assumption that employees in public services engage in activities that go beyond their self-interest, but never uses this construct as a determinant for their pro-social behavior. In the same time, several studies (Gregg et al. 2011 and Georgellis et al. 2011) bring evidence about the pro-social behavior of employees in public services. However, they do not identify which type of motivation is at the origin of this behavior, they only make the assumption of an intrinsically motivated behavior. We analyze the pro-social behavior of employees in public services and use the public service motivation as determinant of their pro-social behavior. We add other determinants highlighted by the theory of pro-social behavior (Bénabou and Tirole 2006), by Le Grand (2003) and by fit theories (Besley and Ghatak 2005). We test these determinants on Part II and identify for each sector of activity the positive or the negative impact on pro-social behavior of Swiss employees. Contrary to expectations, we find, for this sample, that both intrinsic and extrinsic factors have a positive impact on pro-social behavior, no crowding-out effect is identified in this sample. We confirm the hypothesis of Le Grand (2003) about the positive impact of the opportunity cost on pro-social behavior. Our results suggest a mix of action-oriented altruism and out-put oriented altruism of employees in public services. These results are relevant when designing incentives schemes for employees in the delivery of public services.

From Leadership to Citizenship Behavior in Public Organizations: When Values Matter

After decades of management reforms in the public sector, questions on the impact of leader-ship behavior in public organizations have been attracting increasing attention. This paper investigates the relationship between transformational leadership behavior and organizational citizenship behavior as one major extra-role outcome of transformational leadership. Refer-ring to a growing body of research that shows the importance of public service values and employee identification in public administration research, we include public service motiva-tion and organizational goal clarification as mediating variables in our analysis. Structural equation modeling is applied as the method of analysis for a sample of 569 public managers at the local level of Switzerland. The findings of our study support the assumed indirect relation-ship between leadership and employee behavior and emphasize the relevance of public ser-vice values when analyzing leadership behavior in public sector organizations.

Resigned but satisfied: The negative impact of public service motivation and red tape on work satisfaction

This article examines the relationship between red tape, Public Service Motivation (PSM) and a particular work outcome labelled 'resigned satisfaction'. Using data from a national survey of over 3754 public servants working at the municipal level in Switzerland, this study shows the importance of looking more closely at the concept of work satisfaction and, furthermore, of thoroughly investigating the impact of the different PSM dimensions on work outcomes. Unsurprisingly, research findings show that red tape is the most important predictor of resignation. Nevertheless, when PSM dimensions are analysed separately, results demonstrate that 'commitment to public interest/civic duty' and, to a lesser extent, 'attraction to policy-making' decrease resignation, whereas 'compassion' and 'self-sacrifice' increase it. This study thus highlights some of the negative (or undesirable) effects of PSM that have not been previously addressed in PSM literature.

Policy Environment and Public Service Motivation

This article analyzes whether and to what extent the policy environment of civil servants has an impact on their level of Public Service Motivation (PSM). It hypothesizes that public employees working in different policy domains and stages of the policy cycle are diversely motivated by four PSM orientations (Compassion, Commitment to the public interest, Self-sacrifice and Attraction to politics). The empirical results are based on a survey of 6885 Swiss civil servants. They show that those in charge of Welfare State policies are inclined to have higher levels of 'Compassion', whereas those performing core state functions report lower levels. Furthermore, employees whose main tasks are related to policy formulation display high levels of the 'Attraction to politics' dimension of PSM. This study questions the generalization of previous findings on PSM that are based on heterogeneous survey populations.

Cultural Biases in Public Service Delivery : Evidence from a Regression Discontinuity Approach

What determines the share of public employment, at a given size of the State, in countries of similar levels of economic development? While the theoretical and empirical literature on this issue has mostly considered technical dimensions (efficiency and political considerations), this paper emphasizes the role of culture and quantifies it. We build a representative database for contracting choices of municipalities in Switzerland and exploit the discontinuity at the Swiss language border at identical actual set of policies and institutions to analyze the causal e↵ect of culture on the choice of how public services are provided. We find that French-speaking border municipalities are 50% less likely to contract with the private sector than their German-speaking adjacent municipalities. Technical dimensions are much smaller by comparison. This result points out that culture is a source of a potential bias that distorts the optimal choice for public service delivery. Systematic differences in the level of confidence in public administration and private companies potentially explain this discrepancy in private sector participation in public services provision.

Do Nasty and Pleasant Surprises Regarding Tax Revenue Explain Spending Drifts ? : The Case of the Swiss Cantons

This article aims to explain the difference between the expenditure reported in governmental end-of-the-year budgets and the amounts previously forecasted in the approved beginning-of-the-year budgets. We measure how political, financial, and institutional variables affect this spending drift. We focus on two much-debated factors, namely, tax revenue budgeting errors and the stringency of fiscal rules. Our econometric approach uses a panel based on the 26 Swiss cantons covering the period of 1980 to 2011. Results suggest that stringent fiscal rules discourage budget overruns, whereas underestimating tax revenue-i.e., a budgetary "pleasant surprise"-offers the opportunity for some overspending.

Bureaucracy and the flypaper effect : Evidence from intercommunal fiscal equalisation in the canton of Vaud

Unlike classical theoretical expectations, our empirical study shows that financial transfers to decentralised governments increase local public expenditures much more than would be triggered by an equivalent rise in local income. This empirical evidence of the presence of a flypaper effect is achieved using panel data from 375 municipalities located in the Swiss canton of Vaud covering the period 1994 to 2005. During that time there was a major change in the financial equalisation scheme. Furthermore, our study confirms the analysis of the public choice theory: the effect depends partly on the degree of complexity of the municipal bureaucracy. These results show that local bureaucratic behaviour may impede the effectiveness of a financial equalisation scheme that aims to reduce disparities in local tax.

A Dethroned King? The Limits of State Infrastructural Power in France

Since the 1980s in Western Europe, centralized states' control over subnational territories has been deeply affected by processes of Europeanization and regionalization. These changes have raised the issue of state territorial restructuring in a particular fashion: what capacity have formerly centralized states retained to steer and control subnational territories? The article draws on Mann's concept of infrastructural power, which refers to the state's capacity to exercise control and implement political decisions over the national territory. The article applies the two main operationalizations of the concept, namely the capability of the state to exercise control and the weight of the state in the subnational territories. Empirically, the article focuses on the French state in two policy sectors (education and housing). Although France is a most likely case, this article challenges this expectation, and shows the limits of the French state's infrastructural power over the subnational territories since the late 1980s.

Pouvoir discrétionnaire et redevabilité de la bureaucratie de guichet : les taxateurs d'une caisse de chômage comme acteurs de mise en oeuvre

Résumé en français La thèse de doctorat porte, de manière générale, sur le rôle des acteurs administratifs dans la mise en oeuvre de l'action publique. En particulier, dans le contexte de l'implémentation de la politique suisse d'assurance-chômage, la recherche se focalise sur l'étude de la bureaucratie de guichet, à savoir un type spécifique d'administrations et d'agents publics situés aux premières lignes de l'action étatique et qui sont en contact direct et quotidien avec les usagers. La thèse a pour objectif principal d'obtenir une compréhension détaillée des impacts concrets dont sont porteurs deux types de réformes majeures du secteur public : les réformes de Nouvelle Gestion Publique (NGP) et les nouvelles technologies informatiques. Le questionnement central de la recherche consiste en une étude approfondie des effets de ces réformes sur les bureaucraties de guichet, et en particulier sur deux aspects centraux les concernant : d'une part, le niveau de pouvoir discrétionnaire que les agents publics de base disposent dans l'application de la loi fédérale sur l'assurance-chômage, autrement dit leur marge de manoeuvre ; d'autre part, les manières au travers desquelles ces mêmes agents sont appelés à rendre des comptes quant à leurs actions et leurs décisions, à savoir l'enjeu plus large de la redevabilité publique des acteurs administratifs. Ces enjeux ont été analysés au niveau empirique dans le contexte organisationnel d'une caisse publique cantonale de chômage ayant expérimenté les réformes évoquées ci-dessus. L'organisation choisie a été investiguée au travers d'une étude de cas ethnographique approfondie (observation directe du travail quotidien des agents, entretiens semi-directifs, analyse de documents) pendant une période de six mois environ entre 2008 et 2009. L'analyse empirique fournit quatre résultats : a) de manière générale, les taxateurs de la caisse de chômage disposent d'un faible niveau de pouvoir discrétionnaire ; b) le degré de pouvoir discrétionnaire varie selon le type de tâche ; c) les agents sur le terrain rendent des comptes auprès d'une multiplicité d'acteurs, sur une variété d'aspects de leur travail et au travers de différents mécanismes de contrôle ; d) les outils de NGP et les nouvelles technologies informatiques ont peu d'impact sur l'étendue du pouvoir discrétionnaire des agents mais contribuent à influencer le type de redevabilité publique pratiquée à ce niveau. Summary in English This PhD dissertation deals with the role of public administration in policy implementation. In the Swiss context of unemployment insurance policy, it focuses on street-level bureaucracy, a specific type of public organisations and agents located at the frontline of public action, that is to say low-level civil servants who are in direct, daily and face-to-face contact with citizens. The dissertation aims at a deep understanding of what are the concrete impacts of two main important changes touching public sector organizations : New Public Management reforms (NPM) and Information and Communication technologies (ICT). The main research question consists in assessing the impacts of those reforms on two central issues regarding street-level bureaucrats : on the one hand, the effective degree of discretion frontline agents do have in implementing the federal law on unemployment insurance ; on the other hand, the ways through which these bureaucrats are held accountable about their action and decisions, i.e. accountability regimes at the street-level. These issues have been empirically addressed in the organisational context of a cantonal Unemployment Insurance Funds having experienced the above mentioned reforms. The organisation has been investigated through an in-depth ethnographic case-study (direct observation of daily work, semi-structured interwiews, documentary analysis) in 2008 and 2009 for approximately six months. The empirical analysis indicates that a) in general, street-level agents do exert low degree of policy discretion; b) the level of discretion is variable from one specific task to another ; c) frontline workers are held accountable to many actors, on various aspects of their work and through different mechanisms of control ; d) NPM and ICT instruments have few impact on the issue of policy discretion but more on the type of street-level accountability which is concretely practised at this level.

Metadata For Identity Management of Population Registers

A population register is an inventory of residents within a country, with their characteristics (date of birth, sex, marital status, etc.) and other socio-economic data, such as occupation or education. However, data on population are also stored in numerous other public registers such as tax, land, building and housing, military, foreigners, vehicles, etc. Altogether they contain vast amounts of personal and sensitive information. Access to public information is granted by law in many countries, but this transparency is generally subject to tensions with data protection laws. This paper proposes a framework to analyze data access (or protection) requirements, as well as a model of metadata for data exchange.