Budget Processes: Theory and Experimental Evidence

Karl-Martin Ehrhart (), Roy Gardner, Juergen von Hagen and Claudia Keser ()
Additional contact information
Karl-Martin Ehrhart: University of Karlsruhe
Claudia Keser: IBM T.J. Watson Research Center

No 2006-009, CAEPR Working Papers from Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington

Abstract: This paper studies budget processes, both theoretically and experimentally. We compare the outcomes of bottom-up and top-down budget processes. It is often presumed that a top-down budget process leads to a smaller overall budget than a bottom-up budget process. Ferejohn and Krehbiel (1987) showed theoretically that this need not be the case. We test experimentally the theoretical predictions of their work. The evidence from these experiments lends strong support to their theory, both at the aggregate and the individual subject level.

Keywords: budget processes; voting equilibrium; experimental economics (search for similar items in EconPapers)
JEL-codes: C92 H61 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2006-09
New Economics Papers: this item is included in nep-cdm, nep-exp and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://caepr.indiana.edu/RePEc/inu/caeprp/caepr2006-009.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: Budget processes: Theory and experimental evidence (2007)
Working Paper: Budget Processes: Theory and Experimental Evidence (2006)
Working Paper: Budget processes: theory and experimental evidence (2004)
Working Paper: Budget Processes: Theory and Experimental Evidence (2004)
Working Paper: Budget Processes: Theory and Experimental Evidence (2001)
Working Paper: Budget processes: Theory and experimental evidence (2000)
Working Paper: Budget Processes: Theory and Experimental Evidence (1999)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inu:caeprp:2006009

Access Statistics for this paper

More papers in CAEPR Working Papers from Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington Contact information at EDIRC.
Bibliographic data for series maintained by Center for Applied Economics and Policy Research ().