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Formula budgeting: The economics and analytics of fiscal policy under rules
Author(s) -
Hanushek Eric A.
Publication year - 1986
Publication title -
journal of policy analysis and management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.898
H-Index - 84
eISSN - 1520-6688
pISSN - 0276-8739
DOI - 10.1002/pam.4050060102
Subject(s) - analytics , constraint (computer aided design) , forcing (mathematics) , fiscal policy , economics , process (computing) , budget process , public economics , macroeconomics , politics , accounting , political science , computer science , mechanical engineering , data science , climatology , law , engineering , geology , operating system
The dramatic change in aggregate fiscal policy in recent years has contributed to a shift from process rules to allocation rules in federal budgeting. Although the allocation rules inherent in formula budgeting seem to offer fairness in times of fiscal constraint, they actually impose arbitrary program‐level budgets that reflect the peculiarities of baselines, accounting conventions, and time horizons. Formula budgeting also changes the analytical environment, forcing policy analysts to pay greater attention to institutional arrangements.