The maximization of discretionary budget: an explanation for the pattern of computer investments in the federal government

This study of bureaucratic behavior is from the perspective of a particular federal government operations process - the management and delivery of computing services to the federal agencies. It supports the idea that federal bureaucrats are utility maximizers. The first of the two theories considered in this thesis is based upon William Niskanen's hypothesis that the primary objective of the government bureaucrat is to maximize the bureau's budget through the maximization of output. The second theory is based upon Jean-Luc Migue’s and Gerald Belanger's hypothesis that the objective of bureaucrats is to maximize "discretionary budget” - the difference between the bureau's total budget and the cost of producing the bureaus authorized output. This thesis contends that the maximization of discretionary budget is the maximand of the federal bureaucrat evaluating the computer investment decision.