Politicians' Remuneration and Budgetary Behaviour in Czech Municipalities

Lukáš Hulínský

Politická ekonomie, 2025, vol. 2025, issue 6, 948-966

Abstract: This paper aims to bridge a gap in public finance research by investigating the impact of remuneration increases for local politicians on various budgetary indicators in Czech municipalities using the regression discontinuity design method. Building on prior studies from Italy and the Netherlands, this research examines how remuneration influences budgetary behaviour. Focusing on municipalities with populations ranging from 5 to 20 thousand inhabitants, divided by a threshold of 10 thousand, where remuneration increases occur automatically, the analysis reveals significant effects on budget allocations. Particularly notable are increases in current and total expenditures, alongside a decrease in investment expenditures. The study also explores resource allocation across different sectors, highlighting the influence of remuneration on areas such as culture and public administration.

Keywords: Politician; remuneration; municipality; budget; public finance (search for similar items in EconPapers)
JEL-codes: D72 G28 H72 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.18267/j.polek.1472

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