Political Budget Cycles in the European Union

Jiří Gregor

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 2016, vol. 64, issue 2, 595-601

Abstract: This paper provides research on the theme of the political budget cycles. The goal is to find out whether or not the government tries to manipulate the state budget and its components for the purpose of re-election across the countries of the European Union. In order to verify this theory a dynamic panel data model was used. The results were significant, but only if predetermined elections were not counted into the estimations. In that case, the theory of the political budget cycles could be accepted as valid for the EU countries. The main driving force of the political budget cycles across the countries of the European Union is fluctuation of the government expenditures. During the election year, the government expenditures are higher, and a year after the election, government expenditures are lower. This is reflected into the state budget balance.

Keywords: political budget cycles; government expenditures; government revenues; elections; GDP growth; dynamic panel model; generalized method of moments; European Union (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://acta.mendelu.cz/doi/10.11118/actaun201664020595.html (text/html)
http://acta.mendelu.cz/doi/10.11118/actaun201664020595.pdf (application/pdf)
free of charge

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mup:actaun:actaun_2016064020595

DOI: 10.11118/actaun201664020595

Access Statistics for this article

Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis is currently edited by Markéta Havlásková

More articles in Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis from Mendel University Press
Bibliographic data for series maintained by Ivo Andrle ().