This book provides an introduction to the positive theory of the
budgetary process based on the theory of public choice. Although
budgetary institutions are very diverse, both between and within
countries, it is possible to identify key elements which are common
to all forms of representative government. The author identifies
these key elements as the supply of services by public agencies;
demand for services by political bodies (cabinet, houses of
parliament, etc); negotiations between administrators of agencies
and political bodies in an 'internal market'; and decision-making
in the form of budgetary and substantive legislation. The book
develops a step-by-step model which incorporates all these
elements, a model which can be used to explain and predict
budgetary decisions in existing institutions, as well as to analyze
institutional change, including cost budgeting and various forms of
privatization.
General
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