This text addresses long standing and current questions on government productivity. Its scope and coverage range from theory to very specific applications. First of all it demonstrates the applicability of a theoretical framework to concrete issues in the public sector: the Principal Agent (PA) theory or the Agency theory. Secondly, it demonstrates the different perspectives of this theoretical framework as seen by researchers and practitioners from various countries. The volume is based upon the revised seminar papers from a conference that was held at the University of Twente. Two trends obvious in the world are its increasing global character and the need for increasingly efficient and effective organizations. Inter and intra governmental organizations need to learn to effectively and efficiently work together in complex web like relationships. This study forms a major step in that direction. It consolidates several current economic concepts that are highly visible and specifically applies them to various levels and functions of government. It emphasizes that PA theory is a powerful conceptual framework because of the economic focus on transactions between principals and agents.The issues of information asymmetry, across government constituents, political/diplomatic considerations, and the narrow focus of PA problems are described. Attention is also given to the issues of citizen demands, internal markets, franchising, competitive procurement and "contracting in". The study concentrates on academic thinking about the applicability of PA concepts to administrative theory building. As such it makes a contribution to the knowledge and practice of public administration world-wide.
