In this paper we analyze what happened in equilibrium of budgeting game after introducing the participatory budgeting system into local governments in Korea. We find that the implementation of participatory budgeting system may hold down the size of t...
In this paper we analyze what happened in equilibrium of budgeting game after introducing the participatory budgeting system into local governments in Korea. We find that the implementation of participatory budgeting system may hold down the size of total budget per capita in local governments. This means that there are somewhat effects on controlling the budget maximizing behaviors of bureaucrats through the citizen participation in a budgeting game. The implementation of the participatory budgeting system, however, did not have significant effects on the changes in the size of social development budget per capita and the ratio of social development budget to the total budget in local government. This tells us that residents have difficulty in securing the budget expenditures for themselves in a budgeting game under the new institution. In its final analysis, the participatory budgeting system generally does not have substantial effects on the structure of budget system and too much efforts are needed to ensure its effectiveness.