Abstract
In this paper we develop a framework to assess the implications of information exchange within the complex setting of governmental budgeting. The framework draws on principal-agent relations and organizational learning, a perspective we call relational learning. Matching the agency's style of learning with predominant patterns of information exchange (i.e., principal-agent relations–organizational networks and relationships), we construct a matrix of definable “relational learning” budget behaviors or models. Each model is associated with a pattern of information exchange recognizable to most budgeters, namely the budget process and budget contract. The models are presented as reasonable theoretical benchmarks for assessing budgeting practice and reforms.
ACKNOWLEDGMENTS
The authors appreciate deeply the comments by the anonymous reviewers. Their suggestions, as well as the suggestions of Bart Hildreth helped to improve significantly the quality of the manuscript.