Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/93749
Authors: 
Ehrhart, Karl-Martin
Gardner, Roy
von Hagen, Jürgen
Keser, Claudia
Year of Publication: 
2006
Series/Report no.: 
SFB/TR 15 Discussion Paper 146
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.
Subjects: 
Budget processes
voting equilibrium
experimental economics
JEL: 
H61
C91
C92
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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