Published online by Cambridge University Press: 04 November 2014
Can American presidents use their budget proposal authority to achieve theirown partisan policy priorities? This is an important, yet challenging,question to answer since formal executive authority is ambiguous, andbudgetary powers are shared in the US separation of powers system. Indeed,the question remains open since prior empirical designs conflate externalconstraints (arising from political and policy conditions) with those thatreflect executive partisan policy priorities. This study advances a novelstochastic decomposition of executive budget proposals in order to analyzethe extent to which presidents can shape the legislative funding of USfederal agencies consistent with their own partisan policy priorities.Statistical evidence reveals that presidents exert partisan-based budgetaryinfluence over appropriations that cannot be ascertained from previousempirical studies that rely on either the observed gap between presidentialrequests and congressional appropriations or standard instrumental variableestimation methods. The statistical evidence also indicates that presidentsare marginally more effective at converting their partisan policy prioritiesinto budgetary outcomes under divided party government. Contrary totheoretical predictions generated from bilateral veto bargaining models,presidents are also shown to exert effective partisan budgetary influenceeven when their budget requests exceed congressional appropriations.
George A. Krause is Professor, Department of Political Science,University of Pittsburgh, Pittsburgh, Pennsylvania 15260 (email: gkrause@pitt.edu). Ian PalmerCook is Ph.D. Candidate, Department of Political Science, Universityof Pittsburgh, Pittsburgh, Pennsylvania 15260 (email: ipc4@pitt.edu). Earlier versions ofthis article were presented at the Politics of US Federal Spending Conference, UC–Merced, 27–28 May 2010 and at theCenter for American Political Studies at Harvard University, 6 March2009. We thank Sarah Anderson, Dan Berkowitz, Anthony Bertelli, JanetBox–Steffensmeier, Brandice Canes–Wrone, Dan Carpenter, Chris DenHartog, Sean Gailmard, Brad Gomez, Jude Hays, Will Howell, KristinKanthak, LeeAnne Krause, Matthew Lebo, David Lewis, Mathew McCubbins,Soilou Namoro, John Patty, Jean–Francois Richard, Mehmet Soytas,Jennifer Victor, Christopher Wlezien, Jon Woon and seminarparticipants for helpful feedback at various stages of this project.We thank Jon Woon for graciously providing us with his HouseAppropriations Subcommittee data.