Title: Punctuated equilibrium theory and enhancement of local government investment pool innovation

Authors: Julius A. Nukpezah

Addresses: Department of Political Science and Public Administration, Mississippi State University, 104 Bowen Hall, 456 Hardy Road, Mississippi State, MS 39762, USA

Abstract: This article draws on the punctuated equilibrium theory for a theoretical backdrop to examine the causes of incremental and revolutionary changes in LGIP innovations using secondary sources of information. The study finds that the adoption of LGIP innovations that are state-sponsored, local government-sponsored, and risk-averse occurred during focusing events. The second major finding is that incremental changes occurred across states over a period of time to make the LGIPs more effective and comply with unique state investment policy preferences. The study contributes to understanding how governments adapt innovations to their unique environments to reflect their preferences and how they respond to focusing events through enhancements of innovations.

Keywords: money market mutual funds; local government investment pools; LGIPs; cash management; treasury management; financial management innovation; interlocal agreement; collaboration; competition; risk management; innovation; performance; punctuated equilibrium theory; policy adoption.

DOI: 10.1504/IJPSPM.2021.114041

International Journal of Public Sector Performance Management, 2021 Vol.7 No.2, pp.217 - 235

Received: 04 Jul 2018
Accepted: 06 Apr 2019
Published online: 08 Apr 2021 *

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