Evaluation of efficiency of infrastructure management at the provincial level

In this research an attempt is made to measure the efficiency of infrastructural management. The principal-agent theorem is used as a broader framework. In this theorem, it is questioned to what extent a principal is able to control an executing agent; often used in the relation between shareholders and executive boards. In this case, governments are the acting agent on behalf of the people as principal. Management of infrastructural networks is very costly, and the principal should be able to assess whether the agent is acting efficiently. The academic value of this research is in a contribution to the literature on measurement of governmental performance.