Organizational Performance and Government Resource Allocation: Panel Evidence from Washington State’s Public Programs

Sungho Park

20 citations0/0 files storedPublic Performance & Management Review

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Public Policy and Administration Research Economic and Fiscal Studies Local Government Finance and Decentralization

Abstract

Whether organizational performance shapes government resource allocations or not has long been a contentious issue, especially since the 1990s when the New Public Management movement vitalized performance-based budgeting across countries. To contribute to this ongoing debate, this study examines if different levels of organizational performance achievement affect annual budget changes, focusing on Washington State’s public programs from 2006 to 2015. This study finds a significant relationship between program performance and budget changes, particularly during fiscally hard times. The findings also suggest the reward mechanism associated with performance-based resource allocation, indicating that higher program performance may lead to budget increases.

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References

2018Dealing with endogeneity bias: The generalized method of moments (GMM) for panel data 1995On the unintended consequences of publishing performance data in the public sector 2001Promoting the Utilization of Performance Measures in Public Organizations: An Empirical Study of Factors Affecting Adoption and Implementation 1999Performance Measurement in Municipal Government: Assessing the State of the Practice 2005Models of Performance-Measurement Use in Local Governments: Understanding Budgeting, Communication, and Lasting Effects 2015Drivers of Performance Information Use: Systematic Literature Review and Directions for Future Research 2013Local Government Management and Performance: A Review of Evidence 1997Dealing with Cynical Citizens

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