Gérard Bélanger

Toward a general theory of managerial discretion

The basic idea behind the managerial discretion approach to the analysis o f bureaus and nonprofit institutions is that managers are assumed to derive personal satisfaction from allocating resources of their firm to other than productivity increasing expenses. 1 This assumption rests on the fact that in the noncompetitive world in which these producers operate a more or less substantial degree of freedom is allowed to the managers in the use of some portion of the firms resources. The whole analysis therefore revolves around two questions: First, what is the amount of resources available to the manager for allocation to his preferred expenses? Second, how are these resources allocated and with what results on the equilibrium level of output, cost and price? In the first section of this paper we will maintain that present theories of nonprofit institutions mostly provide partial and narrow answers to these questions. In the second part a more general model of discretionary behavior will be developed. Empirically verifiable consequences will be deducted. Among the conclusions derivable from the theory suggested are the following: The budgets of bureaus are always too large but output is not necessarily so from the standpoint of Pareto efficiency; this results from bureaucrats enjoying

Aluminium ou exportation: de l'usage de l'électricité québécoise (With English summary.)

While the price of elasticity is higher in the North-Eastern United States than in the Quebec industrial market, the Quebec government is maintaining its traditional policy of promoting the establishment of electricity-intensive industries by providing them with electricity at a price below the export price. This was the case with the recent establishment and expansion of four aluminum plants in Quebec. This decision has led to an estimated annual loss of

Federalism and local government

300 million in revenue for the next 24 years. This represents an indirect subsidy of

L’univers du secteur public et les règles comptables utilisées dans les systèmes statistiques canadiens

190,577 per job directly created by the aluminum plants for each of the next 24 years. This choice of favoring regional development through industrialization matches the traditional role that electricity has played in Quebec public policy.