We examine the determinants that shape the spending preferences of public sector employees on several budgetary appropriations. Following Niskanen?s (1971, 1975, 1994) budget maximising theory, we test whether these employees prefer larger budgetary appropriations rather than less. We measure their preferences to increase their own bureau?s appropriations and compare those against their preferences for other bureaux?s appropriations. The empirical evidence is gathered via a mail survey targeting high level officials from different Ministries in Finland. The analysis of the responses suggests that Niskanen?s theory is supported, in part.
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Paper provided by Government Institute for Economic Research (VATT) in its series VATT Research Reports with number
114.
Find related papers by JEL classification: H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
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