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Advancing E-Government: Financing Challenges and Opportunities

Authors

  • Yu-Che Chen,

    Corresponding author
    1. Northern Illinois University
      Yu-Che Chen is an assistant professor in the Division of Public Administration at Northern Illinois University. His main research and teaching interests are electronic government and collaboration. His current research focuses on the role of information technology in interorganizational collaboration. He has published in Public Performance and Management Review, Social Science Computer Review, and the International Journal of Electronic Government Research. He serves on the Information Technology Committee for the National Association of Schools of Public Affairs and Administration.
      E-mail: ycchen@niu.edu
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  • Kurt Thurmaier

    Corresponding author
    1. Northern Illinois University
      Kurt Thurmaier is a professor of public administration at Northern Illinois University. His teaching and research interests include public budgeting and finance, comparative administration, research methods, and intergovernmental relations. Before joining the academic community, he was a budget and management analyst in the budget office for the state of Wisconsin. His books include Case Studies in City–County Consolidation with Suzanne Leland and Policy and Politics in State Budgeting with Katherine Willoughby. His work has appeared in the Public Administration Review, Journal of Public Administration Research and Theory, and Public Budgeting and Finance, among others.
      E-mail: kthur@niu.edu
    Search for more papers by this author

Yu-Che Chen is an assistant professor in the Division of Public Administration at Northern Illinois University. His main research and teaching interests are electronic government and collaboration. His current research focuses on the role of information technology in interorganizational collaboration. He has published in Public Performance and Management Review, Social Science Computer Review, and the International Journal of Electronic Government Research. He serves on the Information Technology Committee for the National Association of Schools of Public Affairs and Administration.
E-mail: ycchen@niu.edu

Kurt Thurmaier is a professor of public administration at Northern Illinois University. His teaching and research interests include public budgeting and finance, comparative administration, research methods, and intergovernmental relations. Before joining the academic community, he was a budget and management analyst in the budget office for the state of Wisconsin. His books include Case Studies in City–County Consolidation with Suzanne Leland and Policy and Politics in State Budgeting with Katherine Willoughby. His work has appeared in the Public Administration Review, Journal of Public Administration Research and Theory, and Public Budgeting and Finance, among others.
E-mail: kthur@niu.edu

Abstract

As e-government evolves into the transactions stage, governments must grapple with how to finance the development of e-transactions. The authors argue that the externalities effects of electronic transactions suggest they are appropriately financed by some combination of public investment and user charges. We propose a self-financing model adhering to two basic requirements. A flexible pricing framework is the core of the self-financing model, as it embodies both the firm’s and the government’s perspectives. We assess basic assumptions of the pricing framework using contingent valuation methodology and a statewide survey of more than 400 firms. The empirical estimates we develop of the willingness to pay for e-transactions with state government and the theoretical discussion about the self-financing model form the basis for prescribing policy recommendations.

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