ABSTRACT

In fiscal year 1990, the space agency's budget was about $12 billion. The 1991 Report of the Advisory Committee on the Future of the US Space Program calls for National Aeronautics and Space Administration (NASA) budget during the 1990s to grow 10% per year after adjusting for inflation. As Telson emphasizes, "the political dynamics change at every stage of the process." Supporters of NASA programs should in the first stage support increases in nondefense discretionary programs. In addition to shirking by the public and re-election constraints of public decisionmakers, additional dimensions of the principal-agent problem involve the science community and the aerospace industry. The principal-agent problem as described leads directly to predictable behavior on the part of the players in arguing the size and allocation of the NASA budget. Some benefits are less tangible but are nonetheless a direct outcome of space activity, such as expanded human knowledge from space science or the generation of national pride or geopolitical advantage.