Abstract
The present paradigm shift away from laissez-faire creates a window of opportunity to improve the flow of structured information or knowledge by making individual access to excludable public benefits conditional on ascertainable efforts to limit claims, as agreed upon in situational contracts. Contracts are situationalwhen agents in delivery are mandated to allow for differences in ability to perform of beneficiaries and to offer customised enabling facilities to improve their capabilities, in line with the vision on fairness of the government in charge. Degrees of freedom and transaction costs are controlled through political guidance in protocols and mandates, on the basis of apply-or-explain. Mutual adjustment in situational response reveals individual preference in direct democracy, improves goal convergence and the fit between supply and demand, reduces opportunism, furthers trust and induces open innovation. The chapter reports on a successful application in The Netherlands.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Buchanan, J. and Congleton, R.D. (1998). Politics by Principle, Not Interest. Cambridge: University Press.
Lindblom , Ch. E. (1977). Politics and Markets. New York: Basic Books.
Thompson, G. , Frances, G. , Levacic, R. and Mitchell, J. (Eds.) (1991). Markets, Hierarchies and Networks: The Coordination of Social Life. London: Sage.
Stiglitz, J. (2002). Information and the change in the paradigm in economics (Nobel Lecture). American Economic Review, 92, 460–501.
Simon, H. (1976). From substantive to procedural rationality. In: S. Latsis (Ed.), Method and Appraisal in Economics. Cambridge: University Press, 129–148.
Akerlof, G.A. and Schiller, R.J. (2009). Animal Spirits. Princeton, NJ: Princeton University Press.
Kahneman, D. , Wakker, P and Sarin, R. (1997). Back to Bentham? Explorations of experienced utility. Quarterly Journal of Economics, 112: 375–405.
Sen, A.K. (1977). Rational fools: a critique of the behavioural foundations of economic theory. Philosophy and Public Affairs, 6, 317–344, reprinted in Sen (1982) . Choice, Welfare and Measurement. Oxford: Blackwell, 84–106.
Sen, A.K. (1987). On Ethics and Economics. Oxford: Blackwell.
Sent, E.M. (2004). Behavioral economics: how psychology made its (limited) way back into economics. History of Political Economy, 36, 735–760.
Hennipman, P. (1995). Welfare Economics and the Theory of Economic Policy. Aldershot: Elgar.
Hayek, F.A. (1960). The Constitution of Liberty. Chicago: Aldine.
Rawls, J. (2001). Justice as Fairness. A Restatement. Cambridge: Belknap Press.
Dworkin, R. (2002). Sovereign Virtue. Cambridge: Harvard University Press.
Vandenbroucke, F. (2001). Social Justice and Individual Ethics in an Open Society. Berlin: Springer.
Granovetter, M.S. (1985). Economic action and social structure: the problem of embeddedness. American Journal of Sociology, 91, 481–510.
Sen, A.K. (1985). Commodities and Capabilities (Hennipman Lecture). Amsterdam: North-Holland.
Sen, A.K. (1999). Development as Freedom. New York: Alfred A. Knopf.
Nussbaum, M.C. (2006). Frontiers of Justice. Cambridge: Belknap Press.
Weber, L. (1979). L’Analyse économique des dépenses publiques (The Economic Analysis of Public Expenditure). Paris: Presses Universitaires de France.
Arrow, K.J. (1985). The economics of agency. In: Pratt, J.W. and Zeckhauser, R.J. (Eds.), Principals and Agents: The Structure of Business. Boston: Harvard Business School Press, 37–51.
Wolfson , D.J. (2008). Gelijkheid in een pluriforme samenleving (Equality in a Plural Society). Amsterdam: KNAW Press.
Myrdal, G. (1969). Objectivity in Social Research. New York: Pantheon Books.
Klein, E-H. and Snellen, I. (2009). Complexity Theory and Public Administration. A Critical Appraisal. In: Teisman, G. et al. (2009), 17–36.
Breton, A. (1995). Organizational hierarchies and bureaucracies. European Journal of Political Economy, 411–440.
Pollitt , Ch., Van Thiel, S. and Homburg , V. (2007). New Public Management in Europe. Adaptation and Alternatives. Basingstoke: Palgrave MacMillan.
Le Grand, J. (2007). The Other Invisible Hand. Delivering Public Services through Choice and Competition. Oxford: Princeton University Press.
Halligan, J. (2007). Reintegrating government in third generation reforms of Australia and New Zealand. Public Policy and Administration, 22, 217–238.
Steane, P. (2008). Public management reforms in Australia and New Zealand. Public Management Review, 10, 453–465.
Van Buuren, M.W. , Gerrits, L. and Marks, P. (2009). Public policy-making and the management of co-evolution. In: Teisman, G. et al., 154–171.
Teisman , G.R, Van Buuren, M.W. and Gerrits, L. (2009). Managing Complex Governance Systems. New York: Routledge.
Nooteboom, B. (2004). Governance and competence: how can the be combined? Cambridge Journal of Economics, 28, 505–525.
Fehr, E. and Falk, A. (2002). Psychological foundations of incentives. European Economic Review, 46, 687–724.
Frey, B.S. and Stutzer, A. (2002). What can economists learn from happiness research? Journal of Economic Literature, 40, 402–435.
Fischer, P. and Huddart, S. (2008). Optimal contracting with endogenous social norms. American Economic Review, 98, 1459–1475.
Le Grand, J. (2003). Motivation, Agency and Public Policy. Oxford: Oxford University Press.
Wolfson , D.J. (2010). Situational contracting as a mode of governance. Public Management Review (forthcoming).
Van Slyke, D.M. (2007). Agents or stewards: using theory to understand the government-nonprofit social service contracting relationship. Journal of Public Administration Research and Theory, 17, 157–187.
Eurostat (2009). http://epp.eurostat.ec.europa.eu/tgm/table.do?tab=table&init.
Euwals, R. , De Mooij, R. and Van Vuren, D. (2009). Rethinking Retirement. The Hague: CPB.
Kok, L. (2006). Kosten en baten van integratie (Costs and Benefits of Integration). Amsterdam: SEO.
Kok, L. and Hop, P. (2008). Langdurig in de WAO (Duration of Disability Entitlements). The Hague: Ministry of Social Affairs and Employment.
Wolfson , D.J. (2005). Transactie als bestuurlijke vernieuwing (Situational Contracting in Public Sector Reform) WRR-Verkenning nr. 9. Amsterdam: Amsterdam University Press.
Moore, M. and Hartley, J. (2008). Innovations in governance. Public Management Review, 10, 3–20.
Hirschleifer, J. (1985). The expanding domain of economics’. American Economic Review, 75, 51–68.
Etzioni, A. (1993). The Spirit of Community: The Reinvention of American Society. New York: Simon and Schuster.
Cohen, F. and Rodgers, J. (1995). Associations and Democracy. New York: Verso.
Van Gunsteren, H.R. (2006). Vertrouwen in democratie (Trust in Democracy). Amsterdam: Van Gennep.
Van Gunsteren, H.R. (1998). A Theory of Citizenship. Boulder: Westview Press.
Bénabou, R. and Tirole, J. (2006). Incentives and prosocial behaviour. American Economic Review, 96, 1652–1678.
Tirole, J. (1994). The internal organization of government. Oxford Economic Papers, 46, 1–29.
Shleifer, A. (1998). State versus private ownership. Journal of Economic Perspectives, 12, 133–150.
Hoogtanders, K. et al. (2006). Naar een sluitende keten van preventie, verzuim en re-integratie (Linking Prevention, Sick-leave and Reintegration). The Hague, Ministry of Social Affairs and Employment.
SER (Social and Economic Council). (2006). Co-financing of the Common Agricultural Policy. www.ser.nl
SER. (2008). Waarden van de landbouw (Values in Agriculture). www.ser.nl.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2010 Springer-Verlag Berlin Heidelberg
About this chapter
Cite this chapter
Wolfson, D.J. (2010). Dreaming about a properly informed democracy. In: in 't Veld, R. (eds) Knowledge Democracy. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-11381-9_4
Download citation
DOI: https://doi.org/10.1007/978-3-642-11381-9_4
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-11380-2
Online ISBN: 978-3-642-11381-9
eBook Packages: Business and EconomicsEconomics and Finance (R0)