When Officials Dont Know What They Dont Know: Dunning-Kruger Effect in the Case of Green Budgeting for Local Government

Alvin Ulido Lumbanraja ()
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Alvin Ulido Lumbanraja: Researcher, Institute for Economic and Social Research, Faculty of Economics, University of Indonesia, Jakarta

No 201714, LPEM FEBUI Working Papers from LPEM, Faculty of Economics and Business, University of Indonesia

Abstract: This paper extends the key findings of Kruger & Dunning (1999), which shows that people who are unskilled in a given domain tend to be unaware of their lack of skills, to government circle that is supposed to be filled by professionals. This paper compared individual government officials’ self-assessment of their offices’ ability to perform certain tasks related to green budgeting with their responses to questions that implicitly assess their actual ability to perform such tasks. Consistent with Kruger & Dunning (1999), individuals who have sufficient knowledge and expertise in a given domain tend to have more accurate self-assessment when asked to rate their own expertise, and vice versa. This paper also discusses the theoretical underpinning of how compensation structure is related with Dunning-Kruger effect on policy design and how tying the outcome with compensation can promote learning and better metacognitive abilities, even for less knowledgeable individuals

Keywords: Dunning-Kruger; Effect; —; Green; Budgeting; —; Government; Officials (search for similar items in EconPapers)
JEL-codes: D86 H10 J30 J45 M52 (search for similar items in EconPapers)
Date: 2017-11, Revised 2017-11
New Economics Papers: this item is included in nep-sea and nep-ure
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https://lpem.org/repec/lpe/papers/WP201714.pdf First version, 2017 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:lpe:wpaper:201714

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