Arbeitspapier
Late Budgets
The budget forms the legal basis of government spending. If a budget is not in place at the beginning of the fiscal year, planning as well as current spending are jeopardized and government shutdown may result. This paper develops a continuous-time war-of-attrition model of budgeting in a presidential style-democracy to explain the duration of budget negotiations. We build our model around budget baselines as reference points for loss averse negotiators. We derive three testable hypotheses: there are more late budgets, and they are more late, when fiscal circumstances change; when such changes are negative rather than positive; and when there is divided government. We test the hypotheses of the model using a unique data set of late budgets for US state governments, based on dates of budget approval collected from news reports and a survey of state budget o¢ cers for the period 1988-2007. For this period, we find 23 % of budgets to be late. The results provide strong support for the hypotheses of the model.
- Language
-
Englisch
- Bibliographic citation
-
Series: EPRU Working Paper Series ; No. 2010-04
- Classification
-
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Structure, Scope, and Performance of Government
State and Local Budget and Expenditures
Public Administration; Public Sector Accounting and Audits
- Subject
-
government budgeting
state government
presidential democracies
political economy
late budgets
fiscal stalemate
war of attrition
Haushaltsplanung
Öffentlicher Haushalt
Neue politische Ökonomie
Verhandlungstheorie
Länderhaushalt
USA
- Event
-
Geistige Schöpfung
- (who)
-
Andersen, Asger L.
Dreyer Lassen, David
Holbøll Westh Nielsen, Lasse
- Event
-
Veröffentlichung
- (who)
-
University of Copenhagen, Economic Policy Research Unit (EPRU)
- (where)
-
Copenhagen
- (when)
-
2010
- Handle
- Last update
-
10.03.2025, 11:45 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Andersen, Asger L.
- Dreyer Lassen, David
- Holbøll Westh Nielsen, Lasse
- University of Copenhagen, Economic Policy Research Unit (EPRU)
Time of origin
- 2010
Other Objects (12)
The Impact of Fiscal Governance on Bond Markets: Evidence from Late Budgets and State Government Borrowing Costs
Is Africa too late for 'late development'? Gerschenkron south of the Sahara
Better Late Than Never? How Late Completion Affects the Early Careers of Dropouts
On Heckits, LATE, and Numerical Equivalence
Late-career unemployment and cognitive abilities
Sub-National Optimal Budget Allocation and Borrowing under Soft Budget Constraint
The Safe Carbon Budget
Training in Late Careers: A Structural Approach
Late Fertility Intentions and Fertility in Austria
Do School Budgets Matter? The Effect of Budget Referenda on Student Performance
Public Budgets in Sweden: A Brief Account of Budget Structure and Budgeting Procedure
Customs unions and national budgets
The Impact of Fiscal Governance on Bond Markets: Evidence from Late Budgets and State Government Borrowing Costs
Is Africa too late for 'late development'? Gerschenkron south of the Sahara
Better Late Than Never? How Late Completion Affects the Early Careers of Dropouts
On Heckits, LATE, and Numerical Equivalence
Late-career unemployment and cognitive abilities
Sub-National Optimal Budget Allocation and Borrowing under Soft Budget Constraint
The Safe Carbon Budget
Training in Late Careers: A Structural Approach
Late Fertility Intentions and Fertility in Austria
Do School Budgets Matter? The Effect of Budget Referenda on Student Performance
Public Budgets in Sweden: A Brief Account of Budget Structure and Budgeting Procedure
Customs unions and national budgets
The Impact of Fiscal Governance on Bond Markets: Evidence from Late Budgets and State Government Borrowing Costs
Is Africa too late for 'late development'? Gerschenkron south of the Sahara
Better Late Than Never? How Late Completion Affects the Early Careers of Dropouts
On Heckits, LATE, and Numerical Equivalence
Late-career unemployment and cognitive abilities
Sub-National Optimal Budget Allocation and Borrowing under Soft Budget Constraint
The Safe Carbon Budget
Training in Late Careers: A Structural Approach
Late Fertility Intentions and Fertility in Austria
Do School Budgets Matter? The Effect of Budget Referenda on Student Performance
Public Budgets in Sweden: A Brief Account of Budget Structure and Budgeting Procedure