IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v26y2019i14p1214-1217.html
   My bibliography  Save this article

The president and asymmetric use of information

Author

Listed:
  • Bong Hwan Kim

Abstract

While presidents try to allocate resources to their interests in budgeting process, they have limited power to influence because the government budget is approved by the legislative body. This study investigates whether presidents asymmetrically use information on the efficiency of programs to allocate more resources to their interests. Specifically, I focus on leftover funds in the government reporting. Growing leftover funds indicate inefficiency of the programs as they are the results of lack of demand or operational problems in implementation. Using data from the Korean government, I find that the change of leftover funds of programs and the following year’s budget has a negative relation only when the change of leftover funds is negative, which suggests that the efficiency of the program improves. This phenomenon becomes more salient when the programs are related to the president’s political interests. This suggests that presidents allocate resources to the programs of their interests by asymmetrically using the information on efficiency. This study contributes to the extant literature by identifying one of the presidents’ tools to affect the budgeting process.

Suggested Citation

  • Bong Hwan Kim, 2019. "The president and asymmetric use of information," Applied Economics Letters, Taylor & Francis Journals, vol. 26(14), pages 1214-1217, August.
    • Handle: RePEc:taf:apeclt:v:26:y:2019:i:14:p:1214-1217
    DOI: 10.1080/13504851.2018.1543933
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2018.1543933
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2018.1543933?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    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:taf:apeclt:v:26:y:2019:i:14:p:1214-1217. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.