INFLUENCE OF PUBLIC CHOICE THEORY ON MANAGERS' DECISIONS: AN ANALYSIS OF PUBLIC EXPENDITURE IN THE LIGHT OF DISCRETION

Abstract

Decisions in the Public Sector are influenced by the theory of public choice, considered as a starting point to explain the tendency of managers to prioritize spending. The objective of the research is to explain the influence of the theory of public choice on managers' decisions to prioritize spending in certain areas, based on discretion. The main public expenditures that can influence managers' decisions were identified. The research is quantitative, descriptive and documentary. The sample is composed of the 417 municipalities of the state of Bahia and considered the years 2014 to 2017.The findings converge with the assumptions of the PTE. The municipalities of Bahia, through the choices of managers, would exercise discretion in their activities, leading to decisions to prioritize spending. Also, they follow the legal imposition. However, the fact of spending more cannot be correlated with the prioritized areas (p=0.136).  

DOI: https://doi.org/10.56238/sevened2025.008-027