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Participatory budgeting and the pattern of local government spending: Evidence from South Korea
Institution:1. The Bank of Russia, Russia;2. HSE University, Russia;1. London School of Economics and, Political Science (LSE), Houghton Street, WC2A 2AE, London, England, UK;2. Research Institute of Industrial, Economics (IFN), Box 55665, 102 15, Stockholm, Sweden;1. Joint Research Centre, European Commission, Via Enrico Fermi 2749, 21027, Ispra, Italy;2. University of Bremen, Faculty of Business Studies and Economics, Germany;3. CAPP – Research Centre for the Analysis of Public Policies, Università di Modena e Reggio Emilia, Italy
Abstract:We use a panel of Korean municipalities to examine the impact of participatory budgeting on local government expenditures. We find that participatory budgeting systematically alters the pattern of local spending. Municipalities using participatory budgeting reallocate resources toward more immediate and visible expenditures and away from long-term development expenditure. We also find evidence that participatory budgeting affects the municipal budget by a greater amount than the expenditures directly allocated through participatory budgeting. Our findings indicate that participatory budgeting leads to the reallocation of local public spending by increasing information flows between policymakers and service users.
Keywords:Participatory budgeting  Local government expenditures  Allocation of public resources  H70  H72  R50
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