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The New Economics of Organization Export

by: Terry M. Moe
American Journal of Political Science, Vol. 28, No. 4. (1984), pp. 739-777.

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Over the last ten years or so, an important new approach to the study of organizations has emerged within economics. It is perhaps best characterized by three elements: a contractual perspective on organizational relationships, a theoretical focus on hierarchical control, and formal analysis via principal-agent models. This paper provides political scientists with an overview of the "new economics of organization" and explores its implications for the study of public bureaucracy.


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