Political business cycles and construction licensing: Evidence from postâ€ socialist Tirana, Albania (1994â€“2015)
Luca J. Uberti,
Endrit Lami and
The Economics of Transition, 2018, vol. 26, issue 3, 523-552
We analyze the effects of opportunistic and partisan politics on the licensing of construction activities, which in turn determines the level of housing supply. In line with Political Business Cycle theory, we hypothesize that the municipal incumbent may manipulate the supply of construction permits before (general and local) elections in order to boost economic activity and voter satisfaction, or to accommodate specialâ€ interest groups. Our findings, based on timeâ€ series data from postâ€ socialist Tirana (Albania), are consistent with opportunistic and partisan incentivesâ€™ creating cycle effects in the licensing of construction permits. However, we find that the direction of opportunistic election cycles depends critically on the interaction between the municipal incumbent and the centralâ€ level government. Our paper raises important questions about the effects of transition politics on spatial development in postâ€ socialist cities.
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:etrans:v:26:y:2018:i:3:p:523-552
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0967-0750
Access Statistics for this article
The Economics of Transition is currently edited by Philippe Aghion and Wendy Carlin
More articles in The Economics of Transition from The European Bank for Reconstruction and Development Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().