Organizational History and Budgetary Punctuation

Abstract

The basic dynamics of punctuated policy change have been found to be present in a wide variety of political institutions from a range of countries. The presence -- even commonality -- of punctuated change has been clearly and persuasively demonstrated. A key challenge in the literature is now to identify the conditions and institutional arrangements that make punctuated change more likely.This article investigates the role of organizational history in punctuated budgetary change. An error correction model of punctuation suggested by the institutional friction frameworks contends that budgetary punctuation results from built up need for budgetary change that had been prevented by slow-moving institutions. The need builds up until the institutions give way in the form of a budgetary punctuation. This explanation suggests that the probability of a punctuation in a given year is negatively related to having experienced such a punctuation in previous years. An alternative model -- which we will call the institutionalist model -- contends that the propensity for budgetary punctuation is endemic to specific organizations. These organizations possess inherent characteristics that predispose them to punctuated change. The institutionalist model suggests that the probability of experiencing a punctuation in a given year is positively related to having experienced such a punctuation in previous years.The paper uses data from Texas public school districts over a 14 year period to see test these competing models of policy punctuation. The results indicate that recent non-incremental changes raise the probability of additional non-incremental changes -- supporting the institutional hypothesis.