ABSTRACT
This chapter demonstrates the investment and output behavior of bureaus faced by activities with different time-distribution of costs will have both of these characteristics. The combination of services supplied by a multi-service bureau is also influenced by the time-distribution of expenditures. The time-distribution of expenditures also influences the output and budget of a single-service bureau. For any budget-output function for a single service, the selection of more capital-intensive production processes leads, in turn, to a lower output of the service than would be supplied on the basis of present value calculations. For any budget in the early years, this also leads to a lower budget in later years. Casual observation suggests that the investment behavior of bureaus is highly variable but has some bias for capital-intensive processes. A bureau's investment behavior, in contrast, is strongly determined by the nature of the bureaucrat's position.
