Measuring public spending preferences using an interactive budgeting questionnaire

Abstract

This paper considers an innovative approach to measuring public spending preferences using an interactive budgeting questionnaire. After being presented with the President’s requested budget for the upcoming fiscal year, survey respondents were asked to adjust spending levels in line with their personal preferences, subject to budgetary trade-offs. An analysis of survey results reveals that responses sharply contrast with those recovered by traditional survey measures. The results are then used to examine the relationship between fiscal preferences and self-reported ideology, and to explore the structure of budgetary preferences. It is found that preferences scale to two substantive dimensions: the first measures the trade-off between security and non-security spending and strongly correlates with self-reported ideology; and the second reveals a crosscutting cleavage that has attracted little, if any, attention in previous research. Specifically, it measures each respondent’s relative preference for rival and non-rival government goods and services.