Local political business cycles: Evidence from Philippine municipalities

Julien Labonne

Journal of Development Economics, 2016, vol. 121, issue C, 56-62

Abstract: This paper establishes the existence of short-term political business cycles in the Philippines over the period 2003–2009. Examining a balanced panel of 1143 municipalities shows that employment levels increase in the two pre-electoral quarters and drop sharply in the two quarters following elections. Further results are consistent with the cycles being generated by incumbents' attempts to increase their chances of re-election. Cycles are stronger in sectors that incumbents are more able to influence, and when they expect stronger electoral competition. Evidence suggests that these cycles are detrimental to development.

Keywords: Elections; Employment; Decentralization (search for similar items in EconPapers)
JEL-codes: D72 D78 J21 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (41)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:deveco:v:121:y:2016:i:c:p:56-62

DOI: 10.1016/j.jdeveco.2016.03.004

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