Why Lash Yourself to the Mast? The Case of the Danish “Budget Law”

TY - JOUR

T1 - Why Lash Yourself to the Mast?

T2 - The Case of the Danish “Budget Law”

AU - Lobe Suenson, Emil

AU - Nedergaard, Peter

AU - Christiansen, Peter Munk

PY - 2016/3/1

Y1 - 2016/3/1

N2 - The article examines the adoption of the Danish 2012 “Budget Law.” The law added spending ceilings, economic sanctions and mandatory balanced budgets. The law was passed to address the lack of cost control in Danish municipalities and asymmetrical preferences concerning public expenditures and can be interpreted as a credible commitment initiative established to ensure public expenditure control independently of the business cycle. Due to the economic crisis, Danish voters preferred lower public expenditures in 2011 than in 2007. This shift in voter preferences made it easier for the Danish Parliament to pass the Budget Law.

AB - The article examines the adoption of the Danish 2012 “Budget Law.” The law added spending ceilings, economic sanctions and mandatory balanced budgets. The law was passed to address the lack of cost control in Danish municipalities and asymmetrical preferences concerning public expenditures and can be interpreted as a credible commitment initiative established to ensure public expenditure control independently of the business cycle. Due to the economic crisis, Danish voters preferred lower public expenditures in 2011 than in 2007. This shift in voter preferences made it easier for the Danish Parliament to pass the Budget Law.

KW - Faculty of Social Sciences

KW - BUDGET -- Law & legislation

KW - PUBLIC finance

KW - GOVERNMENT spending policy

KW - MUNICIPAL finance

KW - COST overruns

U2 - 10.1111/pbaf.12077

DO - 10.1111/pbaf.12077

M3 - Journal article

SN - 0275-1100

VL - 36

SP - 3

EP - 21

JO - Public Budgeting and Finance

JF - Public Budgeting and Finance

IS - 1

M1 - 3

ER -