Cite JOURNAL ARTICLE
The Economic Theory of Institutional Change (ETIC) and the Emergence of Public Activities
The Case of Public Employment Services in Germany
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 117 (1997), Iss. 2 : pp. 291–312
Up to now, in the economic analysis of public sector growth, we are missing a comprehensive explanation of the emergence of new public activities. The article reports on an exemplary attempt to explain the emergence of public activities with the Economic Theory of Institutional Change (ETIC). It is shown that the ETIC-approach has the capacity for integrating various rather different determinants of new public activities in just one theoretical framework. Another advantage of the ETIC is its capacity for detecting some relevant determinants of public sector change which have been so far under-estimated by the economic analysis of public sector growth.