The Effects of Performance Information on Public Resource Allocations: A Study of Chile's Performance-Based Budgeting System

Abstract

This article reports the findings of a mixed-methods study of the effects of performance-related considerations on the allocation of public resources in Chile. The study considered aspects and stages of the budgetary process that most previous research on the relationship between performance assessments and the budget has tended to disregard. By virtue of this distinctive approach, the study identified many instances of performance considerations' influence that many other studies would have failed to capture. Because of its strictly exploratory character, the study could not establish how typical the different types of effects identified are. But it suggests that the effects most neglected in the literature may account for a great portion, if not for most, of the performance assessments' impact on the quality of public spending.

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