The Information Revolution and the New Public Management

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Abstract
There can be no single theory of public management—whether positive or normative—that is good for all time or all circumstances. Any institutional arrangement has the potential to improve upon another. Conclusions about the utility of institutional arrangements depend on a comparison of information costs under each of the alternatives. The information revolution has dramatically transformed information costs, the relative efficacy of various institutional arrangements and, thereby, the boundaries between the government, the market, and organizations. Many consequences of these changes can be lumped together under the rubric of the new public management. Inevitably, these changes will refashion the institutions of government and public administration and, perhaps, even the nature of the state itself.

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