A structural fit between states and markets? Public administration regulation and market economy models in the OECD

This article examines the relationship between public administration regulation and market economy models in 20 OECD countries. Building on Pollitt and Bouckaert's (2004) administrative dimension, we employ explorative statistical analysis to identify three distinct public administration regimes: an Anglo-American, a French/German and a Scandinavian regime. The regime structure, especially with regard to public employment regulation, shows a high degree of institutional coherence with the co-ordination rules applying to the market economy. Probing deeper, we construct an index of politico-administrative regulation, which is compared to Hall and Gingerich's (2009) index of market coordination. The empirical evidence leads us to presume that public administration reforms are likely to focus on the existing market economy model when introducing private sector instruments to public administrations.