I introduce the concept of the reputational budget, to consider its possible uses within a
Reputation-based Governance (Rebag) framework. The concept is illustrated using an
application to the management of public works, where firms help public administrations
in building public infrastructure.
The reputational budget has several interesting applications. In particular, it
provides objective criteria to use reputational information in public procurement, and it
may alleviate the moral hazard problem that arises in the life-cycle of bureaucrats
