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Journal ArticleDOI

A participatory budget model under uncertainty

TL;DR: This paper proposes a model for participatory budgeting under uncertainty based on stochastic programming, and suggests that this approach seems lacking, especially in times of crisis when public funding suffers high volatility and widespread cuts.
About: This article is published in European Journal of Operational Research.The article was published on 2016-02-16 and is currently open access. It has received 16 citations till now. The article focuses on the topics: Participatory budgeting.

Summary (1 min read)

1. Introduction

  • Most countries have a strict legal framework that regulates budgetary processes.
  • Furthermore, the elaboration of flexible budgets requires the use of multiple tools and methods such as Monte Carlo simulation, forecasting or game theory models (Verbeeten, 2006) Section 5 illustrates their methodology with a simple example.

3. The case of a single participant

  • Β would typically be stated by the technical staff supporting the process after listening to the problem owners concerning uncertainty aversion, with sensitivity analysis performed to assess its impact.
  • The selection of this parameter is critical, since it will affect the number of choices available.
  • In general, the lower β is, the bigger the number of feasible portfolios would be available but, also, the bigger chances of not meeting the specified targets.

4.1.1. Posting under uncertainty

  • The authors assume that projects are ordered according to their expected utility and a simple bookkeeping mechanism is available to avoid repeating portfolios already declined.
  • A participant may propose the portfolio ϝ where projects are gradually included when the proportion of samples satisfying the corresponding constraints is greater than β.

Stop;

  • (c) Approximate K(S, x) through the nondominated portfolio closest to the straight line joining x and B(S, x).
  • The authors just need to replace the corresponding steps in Algorithm 7 (and eliminate its first line) to obtain a much more affordable algorithm.

4.3. Arbitration under uncertainty

  • Method assumes an initial inefficient solution and suggests at each iteration, as new solution, a Pareto improvement with respect to the previous offer, see Raiffa et al. (2002) .
  • The process ends when no further Pareto improvements are possible.
  • Again, this assumes that uncertainty has been previously resolved after applying Algorithms 1-4.
  • As this may be expensive computationally, the authors could apply a similar approach to the BIM under uncertainty algorithm in Section 4.1.2.

5. An example

  • The final budget therefore includes the following five projects:.
  • Bike lane, Park, School, Theater and Trees.

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Citations
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Journal ArticleDOI
TL;DR: A fuzzy technique is proposed for order preference based on the similarity to an ideal solution for the personalized ranking of projects in a participatory budget (PB) based on an empirical example from a Poznan PB project ( Poland).

93 citations


Cites background from "A participatory budget model under ..."

  • ...Theoretical studies have focused on communication, deliberation, and decision making [5], modeling under uncertainty [6], designing general frameworks [7], and experimental solutions [8], [9], but most of these existing solutions only consider support for administrative tasks related to PBs, rather than the actual decisionmaking process....

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Journal ArticleDOI
TL;DR: In this paper, a model to support governmental local managers in public budget optimization, based on an integration of methods, is presented to fill the gap related to weights definition in problematic, commonly performed subjective assessments.
Abstract: Purpose The purpose of this paper is to present a model to support governmental local managers in public budget optimization, based on an integration of methods. It was constructed to fill the gap related to weights definition in problematic, commonly performed subjective assessments. This model supports the decision making in budget distribution identifying the importance of sectors in local governments, captured by historical data. Design/methodology/approach The model was developed following three steps: the first step included the exploitation of the characteristics of local sectors represented by city departments and the data collection procedure using time series (TS). In the second one, the weights regarding the importance of each city department were calculated by the UTASTAR method and based on historical data from the first step. Finally, an objective function was formulated using linear programming and constraints based on law specifications, and as a result, an optimized projection for public budget distribution was performed. Findings The results demonstrated that the model can be more efficient to weights definition, considering the behavior of preferences by historical data and supporting local public resources optimization, also to comply with the legislation, being able to predict or project future values available on the budget. Research limitations/implications The theoretical and practical implications are related with a novelty in recognizing the weights for criteria by a historical behavior of preferences. It can be bringing important directions for budget distribution. The main limitation detected in this study was the difficulty to formulate an assessment involving an integrated opinion from local managers and the population. Practical implications First of all, with the correct allocation of resources, the government has a greater advantage to capture investments from the negotiation with development entities and banks. Second, an efficient local government management can promote compliance with legislation and more transparent public policies. Social implications The correct distribution of resources affects the life quality for citizens, since the government acts as a provider of essential services for the population like education, safety, health, particularly for citizens who depend exclusively on the services offered by the local government. Moreover, it can also affect the environment as resources for garbage collection, disposal services and sanitation and, finally, affect the city development such as infrastructure, taxes, etc. Originality/value It might be considered an original contribution mainly by the development of a procedure to capture values for weights by TS and meeting the manager’s requirements, based on analytical, statistical and mathematical tools integrated.

15 citations

Journal ArticleDOI
TL;DR: In this article, the authors analyse participatory budgeting in two Indonesian indigenous communities, illustrating how the World Bank sponsored neo-liberal model of "technical rational" PB is overshadowed by local values and wisdom, consisting of sophisticated, pre-existing rationalities for public participation.
Abstract: This paper analyses participatory budgeting (PB) in two Indonesian indigenous communities, illustrating how the World Bank sponsored neo-liberal model of “technical rational” PB is overshadowed by local values and wisdom, consisting of sophisticated, pre-existing rationalities for public participation.,Adopting a qualitative and interpretive case study approach, the study draws on data from semi-structured interviews with key stakeholders and periods of participant observation. The paper utilises Weber's characterisations of rationality to analyse the PB process in indigenous communities.,The co-existence of both formal (technical) and substantive rationalities leads two Indonesian indigenous communities to execute participatory budgeting pragmatically. The formal budgetary mechanisms (Musrenbang), cascaded down from central and local governments, are melded with, and co-exist alongside, a tradition of public participation deriving from local cultural values and wisdom (Rembug warga). Reciprocal relationships and trust based on a pre-existing substantive rationality result in community members adapting budget practices while also preserving their local culture and resisting the encroachment of neo-liberal initiatives. The paper offers deeper analysis of the unintended consequences of attempting to implement technical rational accounting reforms and practices in indigenous settings.,The paper provides important insights into the way the interplay between formal and substantive rationality impacts on accounting and budgeting practices in indigenous communities. Our study also presents a unique case in emerging economy contexts in which neoliberal initiatives have been outmanoeuvred in the process of preserving indigenous values and wisdom. The informal participatory mechanism (Rembug warga) retained the community trust that neoliberalism systematically erodes.

13 citations

Journal ArticleDOI
TL;DR: A negotiation support system (NSS) with a theoretical modeling that considers the aspects of human personality and negotiator’s behavior to assist the decision-making of public managers and stakeholders in democratic bargaining processes and support social-efficient outcomes is introduced.
Abstract: Purpose This paper aims to introduce a negotiation support system (NSS) with a theoretical modeling that considers the aspects of human personality and negotiator’s behavior to assist the decision-making of public managers and stakeholders in democratic bargaining processes and support social-efficient outcomes. Design/methodology/approach A game theoretical modeling of public participatory negotiations characterized by complete and perfect information is explored with the inclusion of personality aspects and negotiation styles. The importance of the negotiation knowledge disclosure in the sequential bargains of participative budgeting is highlighted by an experiment with 162 state-owned companies’ managers and graduate students to present the contribution of the system’s applicability. Findings A considerable number of Pareto-efficient deliberation agreements are obtained with few interactions when the negotiation strategies and the personality aspects of opponents and stakeholders are freely available (a symmetry in the public negotiation knowledge). In addition to the set of Pareto-efficient agreements, those with the best social outcome (i.e. that maximize the group satisfaction despite individual losses) are observed when the informational tool for personality and negotiation style inference is enabled. Originality/value Many scholars argue for Pareto-efficient allocation instead of equal divisions of resources within participative democracies and public governance. This work provides a new system with an empirical application and theoretical modeling which may support those arguments based on the nonverbal negotiation aspects.

10 citations

References
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Journal ArticleDOI
TL;DR: The authors extended the directional theory of issue voting from a strictly deterministic model to a model which incorporates voter uncertainty and examined the implications of the theory for representation and developed the link between directional and proximity theory as models of political change and realignment.
Abstract: We extend the directional theory of issue voting from a strictly deterministic model to a model which incorporates voter uncertainty. In the model, each voter has a probability of preferring a given direction of policy with regard to an issue and each party has a probability of pursuing a given policy direction if elected. We examine the implications of the theory for representation and develop the link between directional and proximity theory as models of political change and realignment.

27 citations

Journal ArticleDOI
TL;DR: This paper presents an alternative decision-analytic formulation that, although implicitly using utility functions, is more closely related to probability maximization formulations with which engineers are comfortable and skilled.
Abstract: Reliability-based design optimization is concerned with designing a product to optimize an objective function, given uncertainties about whether various design constraints will be satisfied. However, the widespread practice of formulating such problems as chance-constrained programs can lead to misleading solutions. While a decision-analytic approach would avoid this undesirable result, many engineers find it difficult to determine the utility functions required for a traditional decision analysis. This paper presents an alternative decision-analytic formulation that, although implicitly using utility functions, is more closely related to probability maximization formulations with which engineers are comfortable and skilled. This result combines the rigor of decision analysis with the convenience of existing optimization approaches.

27 citations

Journal ArticleDOI
TL;DR: In this paper, the authors developed a bilateral negotiation model to derive the optimal selling (buying) rule considering the option of waiting to sell and to buy, which narrow the traditional zone of possible agreement and lower the probability of negotiation agreement.

24 citations


"A participatory budget model under ..." refers background in this paper

  • ...For a general discussion on the role of uncertainty in negotiations see Raiffa, Richardson, and Metcalfe (2002), Neale and Fragale (2006) or Moon, Yao, and Park (2011)....

    [...]

Journal ArticleDOI
TL;DR: The authors investigated the influence of hierarchical position on both uncertainty about the mediation and satisfaction with the mediation, and its potential moderating role on the relationship between uncertainty and satisfaction, finding that uncertainty has a stronger negative effect on subordinates' satisfaction with mediation than it does on the supervisors who were involved in mediation.
Abstract: This study explores the influence of hierarchical position on both mediation satisfaction and uncertainty about the mediation. As parties involved in hierarchical conflict typically behave differently and have different perceptions and experiences, we think it is most likely that hierarchical position will affect the mediation process and its outcomes. In this article, we investigate the influence of hierarchical position on both uncertainty about the mediation and satisfaction with the mediation and its potential moderating role on the relationship between uncertainty and satisfaction. To test our hypotheses, we use data from fifty real mediation cases dealing with hierarchical labor conflicts in the Netherlands. As expected, uncertainty has a stronger negative effect on subordinates' satisfaction with the mediation than it does on the supervisors who were involved in mediation. Implications for mediation theory and practice are discussed.

22 citations

01 Jan 2010
TL;DR: This paper investigated the influence of hierarchical position on both uncertainty about the mediation and satisfaction with the mediation, and its potential moderating role on the relationship between uncertainty and satisfaction, finding that uncertainty has a stronger negative effect on subordinates' satisfaction with mediation than it does on the supervisors who were involved in mediation.
Abstract: This study explores the influence of hierarchical position on both mediation satisfaction and uncertainty about the mediation. As parties involved in hierarchical conflict typically behave differently and have different perceptions and experiences, we think it is most likely that hierarchical position will affect the mediation process and its outcomes. In this article, we investigate the influence of hierarchical position on both uncertainty about the mediation and satisfaction with the mediation and its potential moderating role on the relationship between uncertainty and satisfaction. To test our hypotheses, we use data from fifty real mediation cases dealing with hierarchical labor conflicts in the Netherlands. As expected, uncertainty has a stronger negative effect on subordinates’ satisfaction with the mediation than it does on the supervisors who were involved in mediation. Implications for mediation theory and practice are discussed.

21 citations

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In this paper, the authors propose a model for participatory budgeting under uncertainty based on stochastic programming. 

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The paper does not provide information on how citizen participatory budgeting can specifically help people in crisis. The paper proposes a model for participatory budgeting under uncertainty, but does not discuss its application in crisis situations.