A Principal-Agent Theory Approach to Public Expenditure Management Systems in Developing Countries / Luc Leruth, Elisabeth Paul.

Format:

Book

Government document

Author/Creator:

Leruth, Luc.

Contributor:

Paul, Elisabeth.

Series:

IMF Working Papers; Working Paper ; No. 2006/204

IMF Working Papers

Language:

English

Subjects (All):

Government spending policy--Management--Developing countries.

Government spending policy.

Expenditures, Public--Developing countries.

Expenditures, Public.

Physical Description:

1 online resource (45 p.)

Edition:

1st ed.

Place of Publication:

Washington, D.C. : International Monetary Fund, 2006.

Language Note:

English

Summary:

A well-functioning public expenditure management (PEM) system is considered a critical pillar of government efficiency, on par with a low-distortion tax system and efficient tax administration. The paper discusses PEM systems in developing countries using an analytical framework based on principal-agent theory. This simple model can be applied to various PEM systems, and allows for comparisons between institutional settings. To illustrate this, we analyze the benefits derived from the use by the Ministry of Finance (MoF) of two control instruments; ex post audits and ex ante controls, and assess their value in terms of their ability to deter cheating. We derive a set of possible "control regimes" which can be used by the MoF. Although we illustrate the use of the model using developing countries, it is also relevant to developed economies.

Contents:

""Contents""; ""I. INTRODUCTION""; ""II. INTERPRETATION OF PEM UNDER THE PRINCIPAL-AGENT THEORY""; ""III. THE BASIC MODEL ""; ""IV. EX POST AUDITS""; ""V. EX ANTE CONTROLS""; ""VI. CONCLUSION""; ""REFERENCES""

Notes:

"September 2006."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613824592

9781462388141

1462388140

9781451988345

1451988346

9781283512145

1283512149

9781451993233

1451993234

OCLC:

694141282