ABSTRACT
This chapter discusses the topic of budgeting and finance which have reappeared, emerged or drawn people attention for theory building. It talks about three topics: participatory budgeting, behavioral public finance and economics and collaborative budgeting. Through participatory budgeting, citizens deliberate and negotiate over resource distribution. It helps to promote transparency and reduce government inefficiencies and corruption. Models of market and governmental fiscal decisions are based on rational and self-interested individuals who attempt to maximize their satisfaction in the private sector as workers, consumers, and investors and in the public sector as citizen-voters. Much indebted to psychology and sociology, behavioural economics investigates how individuals actually make fiscal choices. Behavioral economics broadly defines motivation by investigating the well-being of others as well as self-interest maximization. The framework of behavioral finance and economics, therefore, will provide researchers with tools to explain what could not be explained with standard economic theories based on rationality or optimality or even the concept of bounded rationality.
