Limiting bureaucratic discretion? Analyzing the design and exercise of administrative judicial review in the welfare sector

This article develops a framework for understanding how the design of administrative judicial review can circumscribe the discretion of different bureaucratic actors. The framework proposes that bureaucratic discretion is limited to a great extent if courts can (i) overturn bureaucratic decisions on substantive grounds, (ii) review decisions associated with high economic costs, and (iii) issue detailed instructions for how rulings are to be implemented. Applying the framework to the Swedish case, we first show that the legislative design of the judicial review process allows administrative courts to greatly limit the discretion of senior officials and street‐level bureaucrats. Second, we show that Swedish courts defer to the expertise of bureaucratic actors in the welfare sector by sparingly overturning decisions. However, when courts actually overturn decisions, they frequently limit bureaucratic discretion by issuing detailed judgments in high‐cost cases, possibly undermining the conditions for good governance.