URI
Think Big, We Do.
Rhode Island Seal

Search ISIAC

Contact


John P. Burkett
Executive Director, ISIAC
Department of Economics
University of Rhode Island
806 Chafee Hall, 10 Chafee Road
Kingston, RI 02881–0808
phone (401) 874–9195
fax (401) 874–2858
Pulpit rock

Abstract

Bureaucratic Behavior Modeled by Reduced-Rank Regression: The Case of Expenditures from the Soviet State Budget

John P. Burkett

Institute for the Study of International Aspects of Competition

Working Paper 96-1

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.

JEL classification: C5, H5, P35

Key words: bureaucratic behavior, reduced-rank regression, Soviet economy, public finance.

Copyright © 2014 University of Rhode Island.

The University of Rhode Island
Think Big, We Do.
A-ZDirectoryContact UsJump to top