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.
- Sprache
-
Englisch
- Erschienen in
-
Series: EPRU Working Paper Series ; No. 2010-04
- Klassifikation
-
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
- Thema
-
government budgeting
state government
presidential democracies
political economy
late budgets
fiscal stalemate
war of attrition
Haushaltsplanung
Öffentlicher Haushalt
Neue politische Ökonomie
Verhandlungstheorie
Länderhaushalt
USA
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Andersen, Asger L.
Dreyer Lassen, David
Holbøll Westh Nielsen, Lasse
- Ereignis
-
Veröffentlichung
- (wer)
-
University of Copenhagen, Economic Policy Research Unit (EPRU)
- (wo)
-
Copenhagen
- (wann)
-
2010
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:45 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Andersen, Asger L.
- Dreyer Lassen, David
- Holbøll Westh Nielsen, Lasse
- University of Copenhagen, Economic Policy Research Unit (EPRU)
Entstanden
- 2010
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