An alternative, though related argument, for government provision, which draws on the multi-task principal agent literature developed by Holmstrom and Milgrom (1991) has been made by Hart et al. (1997). Where there exist non-contractible elements of service provision, they argue private firms have incentive to undertake non-verifiable cost-reducing actions which compromise the quality of provision. In contrast, a government, where savings are not pocketed by bureaucrats, has no incentive to compromise quality and lower costs in this way. A similar argument has been made by Glaeser and Shleifer (1998) to explain the existence of NPOs (Non-profit organisations) when output, or the service provided, is not fully contractible with the purchaser. The theory presented here, in contrast, assumes full and perfect contractibility over the service provided but depends on the existence of PSM. Thus, the private contractor has no recourse to profit by lowering the quality of service provision, so that the considerations in Hart et al. (1997) are not operating here.
Although the output of service is assumed to be fully contractible in the analysis here, a critical component of the theory is that some inputs, in particular labour effort, cannot be perfectly contracted over. The importance of this assumption stems from the outcome orientation of a PSM. In Rose-Ackerman’s (1996) terminology, agents motivated by PSM are termed pure altruists. This is different from an action-oriented motivation such as a ‘warm-glow’, under which agents experience an increase in utility just by performing certain actions. With PSM, the nature of the actions performed is irrelevant, all that matters is the effect of the actions. This can give rise to a free-rider problem, as recognized by Gassler(1998):‘‘I am better off if the poor are better off; I am better off still if you are the one who makes them so.’’ Gassler (1998, p. 3).
PSM cannot be used to weaken employees’ participation constraints. If an employer attempted to lower employee wages by offering less than the going market wage, no one would apply since they would prefer to see the service provided by someone else. Here, instead, PSM is seen to alter an employee’s incentive constraint. If it can be tapped, a public service motivation leads to the provision of non-contractible effort more cheaply, so that the incentive compatible wage falls. Hence, the non-contractibility of labour effort is critical; with full contractibility, the equivalence between participation and incentive conditions renders considerations based on PSM irrelevant.
The paper relates to the debate on public vs. private provision and establishes relatively precise conditions under which PSM may be a factor favouring government provision of social services. A considerable part of the public administration literature on PSM implicitly assumes that its mere existence implies not only a role for government provision, but also that public sector reform based on implementing management and incentive practices from business can diminishemployee effort based on PSM; see, for example, Gregory (1999). Though in broad agreement with those arguments, this paper qualifies more precisely when this can and cannot occur.
最好不要软件翻译 谢谢
跪求汉语翻译.特别急!在线等!!!分不够还可以加!!汉语翻译成英语!!
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