| Summary: | 碩士 === 國立中山大學 === 經濟學研究所 === 95 === At present democracy countries, the governmental budgets must be resolved by legislative process. By means of budget, the government levies tax from citizens and provides public goods to citizens. Local government works closely with their residents; therefore, local government can meet their residents’ needs and preferences, which is more efficient than central government. In addition, budget provides an appropriate point to research local government finance. In the other words, budget management is the core issue to research on local government finance and makes research meaningful. In recent years, the local government expanded it functions and public expenditures increased, which express importance of financial management. Therefore, budget is the critical link to test local government’s financial management. The decision of local government’s budget is formed by planning, compiling, auditing, and administering procedures. The budget administrator’s strategy and interaction will make an impact on quality of budget for compiling and administering which affects on the result of administrational plan.
The main purpose of our thesis, through agency theory of new institutional economics, is to discuss factors that affect decision-making process of budget, such as environment, arrangement, and systematic factors, and administrators’ interaction. Moreover, we also analyze, under the institutional relationship, how limited rational person’s strategic interaction made impact on the decision of budget. Finally, we further research whether result of budget meets citizen’s needs and benefit or causes adverse effect.
Our conclusion discovered that, by institutional factors of budget decision-making process, the budget decision-making needs to be improved. In addition, the entire decision-making process rives with multi-assignor and agency relationship and information asymmetry, which harms benefit of the electorate. Therefore, initialing institution will administer to lower uncertainty, information asymmetry, rectify erroneous resource allocation, and avoid public goods tragedy phenomenon. Therefore, institution is critical factor for efficiency. This is true meaning for new institutional economics.
Keywords: Government Budget, Budget decision, New Institutional Economics, Agency theory, Information asymmetry.
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