Yardstick competition and public sector innovation |
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Authors: | Johannes Rincke |
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Institution: | (1) Department of Economics, University of Munich, 80799 Munich, Germany |
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Abstract: | The paper addresses the incentives of the public sector to implement new technologies in public service provision. The focus
is on the role of local governments under decentralization. Exploiting variation in the level of innovation in a large sample
of US school districts, the impact of yardstick competition on the choice of public sector technologies is identified. It
is shown that the impact of other districts’ innovation activity on a district’s innovation score is much stronger in communities
where incumbents face a high risk of being elected out of office. This finding suggests that under decentralization, yardstick
competition is an important force shaping the decisions of local governments to adopt new technologies.
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Keywords: | Public sector innovation Yardstick competition School districts Public schools |
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