Department of Economics and Business Economics

The public choice of university organization.A stylized story of a constitutional reform

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The essay presents and explains a highly stylized story of the reactions of the structure of a university to a constitutional reform – in the university law – that radically changed the power structure from a bottom-up representative system to a top-down hierarchical system practically without checks and balances. It was meant as a more business-like system to increasing effective-ness. However, the result has been precisely the reverse. Both the (relative) size and the salaries of the bureaucracy have increased, while its effectiveness has fallen. The bureaucracy has grown particularly fast in the special service bureaus outside the normal structure and in the PR-depart-ment. It is shown that these outcomes correspond to the predictions of public choice theory, notably of Niskanen’s theory of bureaucracy.
Original languageEnglish
Place of publicationAarhus
PublisherInstitut for Økonomi, Aarhus Universitet
Number of pages40
Publication statusPublished - 6 Feb 2014
SeriesEconomics Working Papers

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