The GOVERNANCE blog

Governance: An international journal of policy, administration and institutions

How performance contracts are actually used

Delegation Without Agency Loss?  The Use of Performance Contracts in Danish Central Government provides an unusual empirical study of the way in which a widely-touted innovation — performance contracts — are actually used in practice.  The authors — Anne Skorkjaer Binderkrantz and Jorgen Gronnegaard Christensen — find “considerable variation in performance demands.”  The content of agreements hinges on the overall design of the ministry and the extent to which agencies have strong relationships with citizens and businesses.  “To an extremely high extent,” the authors conclude, “ministries have used their wide room for maneuver to design contracts according to portfolio and agency-specific needs.”  Efficiency, they find, is not usually a prominent concern.

Written by Governance

April 10, 2009 at 9:25 am

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