Budgetgames and the private and social demand for mixed public goods

Groot, Hans de; Pommer, Evert

doi:10.1007/bf00116709

Cited by 34 publications

(4 citation statements)

References 11 publications

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“…Political scientists have long acknowledged these shortcomings and have struggled to develop adequate methods to measure public spending preferences (Hansen, 1998; Musgrave, 1959; Welch, 1985). In particular, there was a surge in interest in budget games in the public finance and public choice literatures during the 1980s (Auld, 1980; Brookshire et al, 1982; De Groot and Pommer, 1987; Hockley and Harbour, 1983). Much of this literature concerned designing new and innovative budgeting questionnaires.…”

Section: Interactive Budgeting Questionnairementioning

confidence: 99%

Measuring public spending preferences using an interactive budgeting questionnaire

Bonica

2015

Research & Politics

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This paper considers an innovative approach to measuring public spending preferences using an interactive budgeting questionnaire. After being presented with the President's requested budget for the upcoming fiscal year, survey respondents were asked to adjust spending levels in line with their personal preferences, subject to budgetary tradeoffs. An analysis of survey results reveals that responses sharply contrast with those recovered by traditional survey measures. The results are then used to examine the relationship between fiscal preferences and self-reported ideology, and to explore the structure of budgetary preferences. It is found that preferences scale to two substantive dimensions: the first measures the trade-off between security and non-security spending and strongly correlates with self-reported ideology; and the second reveals a crosscutting cleavage that has attracted little, if any, attention in previous research. Specifically, it measures each respondent's relative preference for rival and non-rival government goods and services.

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Section: Interactive Budgeting Questionnairementioning

confidence: 99%

Measuring public spending preferences using an interactive budgeting questionnaire

Bonica

2015

Research & Politics

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“…The survey design ranges from simple questions like "would you prefer more or less spending on defense?" (Maital, 1979;Alud, 1980;Ferris, 1983;Lewis and Jackson, 1985) to more sophisticated budget games, in which expenditure levels can be varied simultaneously with different constraints (Hockley and Harbour, 1983;Seldon, 1979, 1987;De Groot and Pommer, 1987). In addition, surveys have been used for direct measurement of individual willingness to pay for particular goods (Cumings et al, 1986;Papandrea, 1999;Fleischer and Felsenstein, 2002;Wertenbroch and Skiera, 2002, among others).…”

Section: Introductionmentioning

confidence: 99%

Measurement of the social loss of wrong public budget allocation

Ben-David

Tavor²

2011

International Journal of Social Economics

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PurposeThe purpose of this paper is to measure the social loss occurring due to the inability of the government to use the real public demand function.Design/methodology/approachThe authors developed a model that enables maximization of the public utility of a given public budget by maximizing total consumer surplus, and presented a method for calculating the social loss due to the inability to use the real public demand function.FindingsThe social loss occurring due to the inability of the government to use the real public demand curve was shown.Research limitations/implicationsIn reality, it is impossible to get the proper evaluation of social utility function. Instead, the authors assumed a given public demand for each public good.Practical implicationsThe paper presents a way to measure overtime social loss as a function of the sum of overtime government expenses, the coefficient of variation of the public good supply and the elasticity of demand of the average demand curve.Social implicationsImproving the allocation of public budget.Originality/valueGiven the demand curve for each public good, this paper presents a technique for the optimal allocation of a given budget in order to maximize aggregate consumer surplus.

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“…Budget games provide another avenue for assessing public preferences. In these games people either reallocate expenditures without changing total spending (Bondonio & Marchese, 1994), allocate surplus funds (Alvarez & McCaffery, 2003;Blomquist et al, 2000Blomquist et al, , 2003Israelsson & Kriström, 2001) or cut portfolio budgets to meet a predetermined reduction in total spending (de Groot & Pommer, 1987, 1989. Psychologists have used category rating and magnitude estimation approaches (Kemp, 2002).…”

Section: Introductionmentioning

confidence: 99%

Choice experiment assessment of public expenditure preferences

Kerr

Cullen

Hughey

2010

New Zealand Economic Papers

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Preferences for changes to public expenditures were evaluated using a choice experiment. Results indicate potential efficiency gains from reallocation of expenditures to items with higher marginal welfare. In particular, respondents were found to prefer more spending on health, education and the environment, with health spending providing the highest marginal benefits. The public preferred less expenditure on income support. The choice experiment also identified the impacts of demographic factors. The approach is offered as a complement to prior approaches that research public preferences for budget allocation, with prospects for revelation of richer information for informing social decisions.

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Budgetgames and the private and social demand for mixed public goods

Cited by 34 publications

References 11 publications

Measuring public spending preferences using an interactive budgeting questionnaire

Measuring public spending preferences using an interactive budgeting questionnaire

Measurement of the social loss of wrong public budget allocation

Choice experiment assessment of public expenditure preferences

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