Budgets Reflecting Agencies’ Behaviour

Abstract:

Agencification is a widely seen process which has important budgetary consequences. Competence delegation to agencies is associated with an opportunistic behaviour which must be kept under control using different solutions identified by practitioners. Any of these solutions require a particular budgetary treatment because different tools are used: incentives, penalties, monitoring etc. in our paper we propose to investigate the way agency problems are reflected in budgets (both, principals’ and agents’ budgets).