Local Democracy Ltd

Jacob Aars and Hans-Erik Ringkjøb

Public Management Review, 2011, vol. 13, issue 6, 825-844

Abstract: A number of European countries have witnessed a proliferation of local government enterprises in recent years. Norwegian local councillors are seemingly particularly exposed to this ‘enterprise fever’. Our article explores local governments' approaches to the political control of such companies. We observe a reluctance to intervene directly in the affairs of an enterprise, but there is a last-resort preparedness to take more resolute action. Lastly, in contrast to what the prototypical agency model postulates, we find that those who attach strong aspirations of increased capacity to the establishment of companies appear to lack trust in the same companies' performance capability.

Date: 2011
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Citations: View citations in EconPapers (6)

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DOI: 10.1080/14719037.2010.539110

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