Template-type: ReDIF-Paper 1.0 Author-Name: Sangyub Ryu Author-Name-First:Sangyub Author-Name-Last: Ryu Author-Email: sangyubr@iuj.ac.jp Author-Workplace-Name: International University of University Author-Workplace-Homepage: http://www.iuj.ac.jp/ Author-Name: John Ronquillo Author-Name-First: John Author-Name-Last: Ronquillo Author-Email: jronquil@depaul.edu Author-Workplace-Name: DePaul University Author-Workplace-Homepage: http://www.depaul.edu/Pages/default.aspx Author-Name: Cora Terry Author-Name-First: Cora Author-Name-Last: Terry Author-Email: coraduvall@gmail.com Author-Workplace-Name: The University of Georgia Author-Workplace-Homepage: http://www.uga.edu/ Title: UNDERSTANDING PAY-FOR-PERFORMANCE INSTATE GOVERNMENTS: A Diffusion Theory Approach Abstract: Since the New Public Management is emphasized, the practices of the business sector have been introduced to the public sector without careful assessment. One of the examples is the adoption of pay-for-performance across state governments. Although theories of pay-for-performance may be compelling, scholars have found failures of payfor-performance in the public sector. This study applies a diffusion theory to understand why state governments have adopted pay-for-performance although its effectiveness was not confirmed. Findings show that state governments tend to adopt pay-for-performance as their neighboring states have previously adopted it, but the marginal probability of adoption decreases as more neighbors have adopted pay-for-performance. Length: 31 pages Creation-Date: 2013-09 Number: EMS_2013_17 File-URL: https://www.iuj.ac.jp/workingpapers/index.cfm?File=EMS_2013_17.pdf File-Format: Application/pdf File-Function: First version, 2013 File-Size: 431KB Keywords: pay-for-performance, policy diffusion Handle: RePEc:iuj:wpaper:EMS_2013_17