Budget processes: Theory and experimental evidence
AbstractThis paper studies budget processes, both theoretically and experimentally. We compare the outcomes of bottom-up and top-down budget processes. It is often presumed that a top-down budget process leads to a smaller overall budget than a bottom-up budget process. We show, using structurally induced equilibrium theory, that this may but need not be the case. To test the implications for budget processes of structurally induced equilibrium theory, we conduct a series of experiments. The evidence from these experiments supports the predictions of structurally induced equilibrium theory, both at the aggregate and at the individual subject level. --
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Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 59 (2007)
Issue (Month): 2 (May)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622836
Other versions of this item:
- Ehrhart, Karl-Martin & Gardner, Roy & von Hagen, Jürgen & Keser, Claudia, 2000. "Budget processes: Theory and experimental evidence," ZEI Working Papers B 18-2000, ZEI - Center for European Integration Studies, University of Bonn.
- Ehrhart, Karl-Martin & Gardner, Roy & Hagen, Jürgen von & Keser, Claudia, 2006. "Budget Processes: Theory and Experimental Evidence," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 146, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
- Karl-Martin Ehrhart & Roy Gardner & Jürgen von Hagen & Claudia Keser, 1999. "Budget Processes: Theory and Experimental Evidence," CIRANO Working Papers 99s-33, CIRANO.
- Karl-Martin Ehrhart & Roy Gardner & Juergen von Hagen & Claudia Keser, 2006. "Budget Processes: Theory and Experimental Evidence," Caepr Working Papers 2006-009, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
- Ehrhart, Karl-Martin & Gardner, Roy J & Keser, Claudia & von Hagen, Jürgen, 2001. "Budget Processes: Theory and Experimental Evidence," CEPR Discussion Papers 2661, C.E.P.R. Discussion Papers.
- Ehrhart, Karl-Martin & Gardner, Roy & von Hagen, Jürgen & Keser*, Claudia, 2004. "Budget Processes: Theory and Experimental Evidence," Sonderforschungsbereich 504 Publications 04-57, Sonderforschungsbereich 504, Universität Mannheim & Sonderforschungsbereich 504, University of Mannheim.
- H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
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