Reforming the Public Administration: The Role of Crisis and the Power of Bureaucracy

36 Pages Posted: 9 Aug 2015

See all articles by Zareh Asatryan

Zareh Asatryan

ZEW – Leibniz Centre for European Economic Research

Friedrich Heinemann

ZEW – Leibniz Centre for European Economic Research; University of Heidelberg - Alfred Weber Institute for Economics

Hans Pitlik

Austrian Institute of Economic Research (WIFO)

Date Written: July 1, 2015

Abstract

The need to balance austerity with growth policies has put government efficiency high on the economic policy agenda in Europe. Administrative reforms which boost the efficiency of the administration can alleviate the trade-off between consolidation and public service provision. Against such backdrop, this study explores the determinants of efficiency enhancing public administration reforms for a panel of EU countries using a novel reform indicator. The findings support the political-economic reasoning: An economic and fiscal crisis is a potent catalyst for reforms, but a powerful bureaucracy effectively constrains the opportunities of a crisis to promote this particular type of reform. Furthermore, there is evidence for horizontal learning from other EU countries, and for vertical learning associated with a particular type of EU transfers.

Keywords: Euro-crisis, public sector effciency, cohesion policy, theory of bureaucracy

JEL Classification: H83, H11, D73

Suggested Citation

Asatryan, Zareh and Heinemann, Friedrich and Pitlik, Hans, Reforming the Public Administration: The Role of Crisis and the Power of Bureaucracy (July 1, 2015). ZEW - Centre for European Economic Research Discussion Paper No. 15049, Available at SSRN: https://ssrn.com/abstract=2641084 or http://dx.doi.org/10.2139/ssrn.2641084

Zareh Asatryan (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Friedrich Heinemann

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

HOME PAGE: http://www.zew.de

University of Heidelberg - Alfred Weber Institute for Economics ( email )

Grabengasse 14
Heidelberg, D-69117
Germany

Hans Pitlik

Austrian Institute of Economic Research (WIFO) ( email )

P.O. Box 91
Wien, A-1103
Austria

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