IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v106y2001i3-4p243-74.html
   My bibliography  Save this article

The "Power of the Purse" and Its Implications for Bureaucratic Policy-Making

Author

Listed:
  • Ting, Michael M

Abstract

A dilemma of the "Power of the Purse" is that cutting an agency's budget may make a desired policy infeasible. I examine the implications of this dilemma with a repeated game in which a bureau chooses unobservable policies after a legislature sets its budget. The bureau is work-averse and has its own policy preferences and therefore may cheat, but the legislature may perform an audit to recover "slack" funds. A main result is that if the legislature desires a higher policy level than the agency, then it faces a trade-off between "good" but wasteful policies and "bad" but efficient ones. Copyright 2001 by Kluwer Academic Publishers

Suggested Citation

  • Ting, Michael M, 2001. "The "Power of the Purse" and Its Implications for Bureaucratic Policy-Making," Public Choice, Springer, vol. 106(3-4), pages 243-274, March.
    • Handle: RePEc:kap:pubcho:v:106:y:2001:i:3-4:p:243-74
    as

    Download full text from publisher

    File URL: http://journals.kluweronline.com/issn/0048-5829/contents
    File Function: link to full text
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fuhai Hong & Tat-How Teh, 2019. "Bureaucratic Shirking, Corruption, and Firms’ Environmental Investment and Abatement," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 74(2), pages 505-538, October.
    2. Grossman, Gene M. & Helpman, Elhanan, 2008. "Separation of powers and the budget process," Journal of Public Economics, Elsevier, vol. 92(3-4), pages 407-425, April.
    3. Peter K. Hazlett & Chandler S. Reilly, 2023. "Bureaucratic rent creation: the case of price discrimination in the market for postsecondary education," Constitutional Political Economy, Springer, vol. 34(2), pages 226-256, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:106:y:2001:i:3-4:p:243-74. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.