Why Psychology Matter in Public Sector Budgeting ? An Indonesia Research Evidence
DOI:
https://doi.org/10.61841/zdsc2g89Keywords:
psychology, public sector reform, public sector budgeting cycleAbstract
This is a critical opinion to explain why public sector need to notify psychology in the budgeting process. This article convinced that psychology studies important to understand people involved in budgeting process, in all of budget cycle, from preparation step, ratification, implementation and the accountability of budget process. Archival research used to dig depth understanding behavior in four budget cycle. The data observed in research paper that was presented in Indonesia accounting symposium for 18 years. It was found that the role of psychology as personal problem increased related the impact of public sector reform. Pressure to change a new accounting standard, accounting techniques required a new mind setting up about the value of new public management i.e accountability and transparency. This research has implication in public sector path in using behavioral focus or variable instead of the technical aspect of public sector budgeting. In practical, by understanding the behavioral aspect especially psychology of budgeting actors, it makes easier for government or parliament to make decision related controlling the behavior aspect
Downloads
References
1. Brown, S., Taylor, K., & Wheatley Price, S. (2005). Debt and distress: Evaluating the psychological cost of credit. Journal of Economic Psychology, 26(5), 642–663. http://doi.org/10.1016/j.joep.2005.01.002
2. Dunn, E. W., Gilbert, D. T., & Wilson, T. D. (2011). If money doesn’t make you happy, then you probably aren’t spending it right. Journal of Consumer Psychology, 21(2), 115–125. http://doi.org/10.1016/j.jcps.2011.02.002
3. Earl, P. E. (1988). Economic Psychology. Prometheus. http://doi.org/10.1080/08109028808631845
4. Henriques, G. R. (2004). Psychology defined. Journal of Clinical Psychology. http://doi.org/10.1002/jclp.20061
5. Jameson, C. (2004). The psychology of money. Texas Dental Journal, 121(12), 1182–3. http://doi.org/10.3905/jwm.2000.320388
6. Jonas, E., Hansen, J., Walper, S., & Frey, D. (2015). Money and Finances, Psychology of. In International Encyclopedia of the Social & Behavioral Sciences (pp. 735–740). http://doi.org/10.1016/B978-0-08-097086-8.22011-4
7. Lea, S. E. G., Webley, P., & Levine, R. M. (1993). The economic psychology of consumer debt. Journal of Economic Psychology, 14(1), 85–119. http://doi.org/10.1016/0167-4870(93)90041-I
8. Lilienfeld, S. O. (2012). Public skepticism of psychology: Why many people perceive the study of human behavior as unscientific. American Psychologist, 67(2), 111–129. http://doi.org/10.1037/a0023963
9. Loibl, C., Kraybill, D. S., & DeMay, S. W. (2011). Accounting for the role of habit in regular saving. Journal of Economic Psychology, 32(4), 581–592. http://doi.org/10.1016/j.joep.2011.04.004
10. Pathak, M. (2011). Psychology of money. Psychology at Work, 64–66.
11. Raghunandan, M., Fyfe, D., Kistow, B., Allaham, I., & Raghunandan Students, R. K. (2012). Examining the Behavioural Aspects of Budgeting with particular emphasis on Public Sector/Service Budgets. International Journal of Business and Social Science, 3(14), 107–116. Retrieved from http://ijbssnet.com/journals/Vol_3_No_14_Special_Issue_July_2012/12.pdf
12. Sicilia, M., & Steccolini, I. (2017). Public budgeting in search for an identity: state of the art and future challenges. Public Management Review, 19(7), 905–910. http://doi.org/10.1080/14719037.2016.1243809
13. Sussman, A. B., & Shafir, E. (2012). On Assets and Debt in the Psychology of Perceived Wealth. Psychological Science, 23(1), 101–108. http://doi.org/10.1177/0956797611421484
14. Tarde, G., & Toscano, A. (2007). Economic psychology. Economy and Society, 36(4), 614–643. http://doi.org/10.1080/03085140701615185
15. Thaler, R. H. (1985). Mental accounting and consumer choice. Marketing Science, 4(1), 199–214.http://doi.org/10.1287/mksc.1070.0330
16. Thaler, R. H. (1994). Psychology and savings policies. American Economic Review. http://doi.org/10.1126/science.151.3712.867-a
17. van Veldhoven, G. M., & Groenland, E. A. G. (1993). Exploring saving behaviour: A framework and a research agenda. Journal of Economic Psychology, 14(3), 507–522. http://doi.org/10.1016/0167-4870(93)90030-O
18. Vohs, K. D., Mead, N. L., & Goode, M. R. (2006). The Psychological Consequences of Money. Science, 314(5802), 1154–1156. http://doi.org/10.1126/science.1132491
19. Wirtz, B. W., Piehler, R., Thomas, M. J., & Daiser, P. (2016). Resistance of Public Personnel to Open Government: A cognitive theory view of implementation barriers towards open government data. Public Management Review, 18(9), 1335–1364. http://doi.org/10.1080/14719037.2015.1103889
20. Yuhertiana, I. (2015). Behavioral Public Sector Accunting Research in Indonesia: A Literatur Review.Malaysian Accounting Review, 14(1), 49–64.
Downloads
Published
Issue
Section
License
Copyright (c) 2020 AUTHOR
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
