IDEAS home Printed from https://ideas.repec.org/p/mtl/montde/8733.html
   My bibliography  Save this paper

The Political Economy of the Budget and Efficient Information Processing

Author

Listed:
  • Ghysels, E.

Abstract

Every Year the Government Makes Up a Budget for the Forthcoming Fiscal Year. During the Budget Process, Projections Are Made of Expenditures and Ten Receipts Contingent Upon Predictions of Key Macroeconomic Variables. Naturally, One Expects That the Budget Deficit Or Surplus Actually Realized Will Differ From What Was Initially Announced. Neither of the Two Major Protagonists in the Budget Decision-Making Process, Namely the Legislative and Executive Branches of Government, May Have an Interest in Using Truthful Projections, However. It Is Found That 1) the Difference Between Projected and Realized Budgets Are Substantial; and 2) That the Differences Are Systematically Related to Publicly Available Information At the Time of the Bdget Announcement. the Publicy Available Information Contains Key Macroeconomic Variables As Well As Variables Related to the Electoral and Legislative Process. Finally, Tests Are Derived to Find Out What Information Released Throughout the Fiscal Year Is Useful to Update the Bias Assessment.

Suggested Citation

  • Ghysels, E., 1987. "The Political Economy of the Budget and Efficient Information Processing," Cahiers de recherche 8733, Universite de Montreal, Departement de sciences economiques.
    • Handle: RePEc:mtl:montde:8733
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jean Francois David & Eric Ghysels, 1989. "Y a-t-il des biais systematiques dans les annonces budgetaires canadiennes? (With English summary.)," Canadian Public Policy, University of Toronto Press, vol. 15(3), pages 313-321, September.

    More about this item

    Keywords

    National Budget ; Projections;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mtl:montde:8733. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sharon BREWER (email available below). General contact details of provider: https://edirc.repec.org/data/demtlca.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.