Abstract. Using a utility-based graphical model of bureaucratic choice, this paper develops four empirical predictions from the theory of slack-maximizing bureaucracy. These predictions are compared to those resulting from the Niskanen budget-maximizing model of bureaucracy. Slackmaximizing and budget-maximizing bureaucracies are similar in their response to changes in cost and in their generation of "flypaper effects", but they differ in their responses to matching and lump-sum grants.
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