Budgeting theory through “relational learning” Available to Purchase

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.