THE INTERNAL ORGANIZATION OF GOVERNMENT

The paper first discusses some specificities of the design of incentiv es in the public sector and their implications: multiplicity of goals, unclear weighing of these goals, and nonmeasurability of some of them : lack of comparison, heterogeneity of tastes and dispersion of princi pals. The paper then analyzes career concerns, associated with the pro spect of re-election. promotion, or employment in the private sector, and articulated around some mission. There is a potential multiplicity of missions that can be followed by rational officials. The last part studies the division of labor within government, in particular divisi on of labor among ministries and the use of multiple principals to con trol economic agents, and division of labor aimed at creating informat ion for public decision making and the use of enfranchised advocates o f specific interests.