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The role of bureaucracy is poorly understood in the public choice literature. In particular, there seems to be an acute lack of consensus about the extent to which legislators demand control over administrative agencies, the extent to which interest groups want legislative control over agencies, and even the extent to which bureaucracies themselves can be transformed into interest groups in their own right. Clearly, the correct starting point for analyzing bureaucracy is from a principal-agent perspective. After all, Congress creates administrative agencies, Congress funds administrative agencies, and Congress can, if it chooses, eliminate administrative agencies.

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