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Spending Preferences of Public Sector Officials. Survey Evidence from the Finnish Central Government


  • Kiander, Jaakko
  • Venetoklis, Takis


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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  • Kiander, Jaakko & Venetoklis, Takis, 2004. "Spending Preferences of Public Sector Officials. Survey Evidence from the Finnish Central Government," Research Reports 114, VATT Institute for Economic Research.
  • Handle: RePEc:fer:resrep:114

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    References listed on IDEAS

    1. William Gould, 2000. "Interpreting logistic regression in all its forms," Stata Technical Bulletin, StataCorp LP, vol. 9(53).
    2. Alberto F. Alesina & Roberto Perotti, 1999. "Budget Deficits and Budget Institutions," NBER Chapters,in: Fiscal Institutions and Fiscal Performance, pages 13-36 National Bureau of Economic Research, Inc.
    3. Casas-Pardo, Jose & Puchades-Navarro, Miguel, 2001. "A Critical Comment on Niskanen's Model," Public Choice, Springer, vol. 107(1-2), pages 147-167, April.
    4. Niskanen, William A, 1975. "Bureaucrats and Politicians," Journal of Law and Economics, University of Chicago Press, vol. 18(3), pages 617-643, December.
    5. José Casas-Pardo & Miguel Puchades-Navarro, 2001. "A Critical Comment on Niskanen's Model," Public Choice, Springer, vol. 107(1), pages 147-167, April.
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    Cited by:

    1. Järviö, Maija-Liisa & Luoma, Kalevi & Räty, Tarmo & Aaltonen, Juho, 2005. "Productivity and its Drivers in Finnish Primary Care 1988-2003," Research Reports 118, VATT Institute for Economic Research.
    2. Lindemann, Henrik, 2015. "Regulatory Objectives and the Intensity of Unbundling in Electricity Markets," Hannover Economic Papers (HEP) dp-544, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.
    3. Lindemann, Henrik, 2015. "Budgetary Interests and the Degree of Unbundling in Electricity Markets - An Empirical Analysis for OECD Countries," Hannover Economic Papers (HEP) dp-543, Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät.


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