Understanding and Creating Public Value: Business is the Engine; Government the Flywheel (and Also the Regulator)

Creating Public Value Conference, September 2012

Posted: 4 Sep 2012 Last revised: 12 Jul 2014

See all articles by Fred Thompson

Fred Thompson

Willamette University - Atkinson Graduate School of Management

Polly S. Rizova

Willamette University - Atkinson Graduate School of Management

Date Written: December 12, 2012

Abstract

In this essay, we define the meaning and content of public value, show how government and business create public value, and briefly explain why their governance arrangements work the way they do. We deal first with business and then government. We conclude that government manages risks and that governmental value creation is distinctively concerned with stability. Hence, to make government work better, risk management ought to be central to the practice of public finance, public policy, and public administration. Understanding the importance of stability is potentially of even greater importance to those who research and teach public policy and administration. Indeed, we propose that the elaboration of a general risk assessment model explaining, among other things, government’s systemic inclination to stability, would take our field a long towards integration with mainstream positive social science and, therefore, holds out the prospect of considerable interdisciplinary consilience, although at this time we can do no more than suggest the contours of such a model.

Keywords: Process, Mechanism, Government spending and taxing, Risk, Systemic risk, Public management

JEL Classification: A13, D7, D81, H4, H71, H72, H5, M14

Suggested Citation

Thompson, Fred and Rizova, Polly S., Understanding and Creating Public Value: Business is the Engine; Government the Flywheel (and Also the Regulator) (December 12, 2012). Creating Public Value Conference, September 2012. Available at SSRN: https://ssrn.com/abstract=2141441 or http://dx.doi.org/10.2139/ssrn.2141441

Fred Thompson (Contact Author)

Willamette University - Atkinson Graduate School of Management ( email )

900 State Street
Salem, OR 97301
United States
503-370-6228 (Phone)
503-370-3011 (Fax)

Polly S. Rizova

Willamette University - Atkinson Graduate School of Management ( email )

1120 Couch Street NW Suite 450
Portland, OR 97209
United States

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