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Budgetary Policy with Unified and Decentralized Appropriations Authority

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  • Dharmapala, Dhammika

Abstract

The divestiture of the House Appropriations Committee in the 1880's has received considerable attention of an empirical nature. This paper presents a formal model of legislative decisionmaking, using a common agency formulation to represent interest group lobbying of legislators. This framework is used to analyze the effects of decentralizing appropriations authority. The conditions under which decentralization leads to higher spending are characterized. It is argued that the conventional view that divestiture caused higher levels of spending only holds if decentralization created barriers to lobbying and political bargaining across different committees. In addition, the role of specialized committee knowledge is examined. Copyright 2003 by Kluwer Academic Publishers

Suggested Citation

  • Dharmapala, Dhammika, 2003. "Budgetary Policy with Unified and Decentralized Appropriations Authority," Public Choice, Springer, vol. 115(3-4), pages 347-367, June.
  • Handle: RePEc:kap:pubcho:v:115:y:2003:i:3-4:p:347-67
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    Cited by:

    1. Wehner, Joachim, 2006. "Legislative institutions and fiscal policy," LSE Research Online Documents on Economics 25509, London School of Economics and Political Science, LSE Library.
    2. Ringa Raudla, 2010. "Governing budgetary commons: what can we learn from Elinor Ostrom?," European Journal of Law and Economics, Springer, vol. 30(3), pages 201-221, December.
    3. Martin Gregor, 2008. "Rozpočtová pravidla a rozpočtový proces: Teorie, empirie a realita České republiky [Budgetary rules and budget process: Theory, empirics, and the case of the Czech Republic]," Politická ekonomie, Prague University of Economics and Business, vol. 2008(4), pages 484-504.
    4. Martin Gregor, 2005. "Committed to Deficit: The Reverse Side of Fiscal Governance," Working Papers IES 88, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, revised 2005.

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