What Can Performance Information Do to Legislators? A Budget Decision Experiment with Legislators

Source: Labinot Demaj, Public Administration Review, Volume 77 Issue 3, May/June 2017
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From the abstract:
Studies on the influence of performance information on budgeting decisions have produced contradictory findings. This article offers a framework of the parliamentary context that links performance information to legislators’ budgeting decisions. The framework suggests that the impact on politicians’ allocations will differ depending on whether performance information is reflected in the budget proposal, whether the allocation issue concerns a politically difficult trade-off for the decision maker, and whether information falls into a receptive partisan mind. The experimental study uses 57 actual legislators. The results show that the introduction of performance information into legislators’ deliberation process leads to stronger deviations from the status quo allocation. This difference occurs because performance information highlights more clearly the expected consequences of budgetary changes and allows for more pronounced reactions. More informed decisions, however, might make compromise among legislators more difficult because individual positions will become more polarized.
Previous version:
What Can Performance Information Do to Legislators? A Budget Decision Experiment with Legislators
Source: Labinot Demaj, University of St. Gallen, Law & Economics Working Paper No. 2015-04, September 9, 2014

From the abstract:
Existing studies on the influence of performance information on budgeting decisions are limited and have produced contradictory findings. This paper argues that most previous work has somewhat problematically focused on self-reported use of performance information rather than on the legislative context into which performance information is introduced. This study offers a framework that links performance information to legislators’ budgeting decisions. I argue that the impact will differ depending on whether performance information is reflected in the budget proposal, whether the allocation issue concerns a politically difficult value tradeoff for the decision-maker, and whether the implications of the performance information fall into a receptive partisan mind. This paper studies these aspects by manipulating the first two of these factors in an experimental setting involving budgetary decision-making by 57 actual legislators. The control groups consist of 65 undergraduate students. The results show that the introduction of performance information into the legislators’ deliberation process leads to stronger deviations from the status quo allocation. I argue that this difference occurs because performance information highlights more clearly the expected consequences of budgetary changes and allows for more pronounced reactions. This paper concludes that more informed decisions based on good performance budgets might also create a situation in which it is more difficult for legislators to compromise because individual positions become more polarized.