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A participatory budget model under uncertainty


  • Gomez, J.
  • Insua, D. Rios
  • Alfaro, C.


Participatory budgets are becoming increasingly popular in many municipalities all over the world. The underlying idea is to allow citizens to participate in the allocation of a fraction of the municipal budget. There are many variants of such processes. However, in most cases they assume a fixed budget based upon a maximum amount of money to be spent. This approach seems lacking, especially in times of crisis when public funding suffers high volatility and widespread cuts. In this paper, we propose a model for participatory budgeting under uncertainty based on stochastic programming.

Suggested Citation

  • Gomez, J. & Insua, D. Rios & Alfaro, C., 2016. "A participatory budget model under uncertainty," European Journal of Operational Research, Elsevier, vol. 249(1), pages 351-358.
  • Handle: RePEc:eee:ejores:v:249:y:2016:i:1:p:351-358
    DOI: 10.1016/j.ejor.2015.09.024

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    References listed on IDEAS

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    4. Efremov, Roman & Insua, David Rios & Lotov, Alexander, 2009. "A framework for participatory decision support using Pareto frontier visualization, goal identification and arbitration," European Journal of Operational Research, Elsevier, vol. 199(2), pages 459-467, December.
    5. Thomson, William, 1994. "Cooperative models of bargaining," Handbook of Game Theory with Economic Applications,in: R.J. Aumann & S. Hart (ed.), Handbook of Game Theory with Economic Applications, edition 1, volume 2, chapter 35, pages 1237-1284 Elsevier.
    6. Gomez, J. & Insua, D. Rios & Lavin, J.M. & Alfaro, C., 2013. "On deciding how to decide: Designing participatory budget processes," European Journal of Operational Research, Elsevier, vol. 229(3), pages 743-750.
    7. A. Charnes & W. W. Cooper & G. H. Symonds, 1958. "Cost Horizons and Certainty Equivalents: An Approach to Stochastic Programming of Heating Oil," Management Science, INFORMS, vol. 4(3), pages 235-263, April.
    8. Robert W. Rosenthal, 1978. "Arbitration of Two-party Disputes under Uncertainty," Review of Economic Studies, Oxford University Press, vol. 45(3), pages 595-604.
    9. Robinson, A. & Ysander, Bengt-Christer, 1981. "Flexibility in Budget Policy: The Changing Problems and Requirements of Public Budgeting," Working Paper Series 50, Research Institute of Industrial Economics.
    10. Abdelaziz, Fouad Ben & Aouni, Belaid & Fayedh, Rimeh El, 2007. "Multi-objective stochastic programming for portfolio selection," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1811-1823, March.
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    12. Kriens, J. & van Lieshout, J. Th. & Roemen, J. & Verheyen, P., 1983. "Management accounting and operational research," European Journal of Operational Research, Elsevier, vol. 13(4), pages 339-352, August.
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    Cited by:

    1. Bednarska-Olejniczak, Dorota & Olejniczak, Jaroslaw, 2017. "Participatory Budgeting in Poland – Finance and Marketing Selected Issues," MPRA Paper 87659, University Library of Munich, Germany, revised 2017.
    2. Walczak, Dariusz & Rutkowska, Aleksandra, 2017. "Project rankings for participatory budget based on the fuzzy TOPSIS method," European Journal of Operational Research, Elsevier, vol. 260(2), pages 706-714.


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