Bureaucratic behavior modeled by reduced-rank regression: The case of expenditures from the Soviet state budget

A bureaucratic hierarchy compresses information flowing upward and disaggregates directives passing downward, thus making itself amenable to modeling by reduced-rank regression. Applying this technique to the Soviet government, we find that about eight latent variables are required to characterize t...

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Bibliographic Details
Published in:Journal of economic behavior & organization 1998-02, Vol.34 (1), p.173-187
Main Author: Burkett, John P.
Format: Article
Language:English
Subjects:
Bureaucracy
Bureaucratic behavior
Economic behaviour
Economic organization
Economic systems
Economic theory
Expenditures
Government spending
Public expenditure
Public finance
Reduced-rank regression
Regression analysis
Socialism
Soviet economy
State budgets
Studies
U.S.S.R
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Summary:A bureaucratic hierarchy compresses information flowing upward and disaggregates directives passing downward, thus making itself amenable to modeling by reduced-rank regression. Applying this technique to the Soviet government, we find that about eight latent variables are required to characterize the mapping of predetermined variables into a vector of budgetary expenditures. The latent variables can be interpreted as targets for expenditures in high-priority sectors.
ISSN:0167-2681
1879-1751
DOI:10.1016/S0167-2681(97)00041-3