A Theory of the Budgetary Process*

Otto A. Davis, M. A. H. Dempster and Aaron Wildavsky

American Political Science Review, 1966, vol. 60, issue 3, 529-547

Abstract: There are striking regularities in the budgetary process. The evidence from over half of the non-defense agencies indicates that the behavior of the budgetary process of the United States government results in aggregate decisions similar to those produced by a set of simple decision rules that are linear and temporally stable. For the agencies considered, certain equations are specified and compared with data composed of agency requests (through the Bureau of the Budget) and Congressional appropriations from 1947 through 1963. The comparison indicates that these equations summarize accurately aggregate outcomes of the budgetary process for each agency.In the first section of the paper we present an analytic summary of the federal budgetary process, and we explain why basic features of the process lead us to believe that it can be represented by simple models which are stable over periods of time, linear, and stochastic. In the second section we propose and discuss the alternative specifications for the agency-Budget Bureau and Congressional decision equations. The empirical results are presented in section three. In section four we provide evidence on deviant cases, discuss predictions, and future work to explore some of the problems indicated by this kind of analysis. An appendix contains informal definitions and a discussion of the statistical terminology used in the paper.

Date: 1966
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