The Detrimental Impact of Political Budget Cycles on the Greek Economy

George Petrakos (), Konstantinos Rontos (), Chara Vavoura () and Ioannis Vavouras ()
Additional contact information
George Petrakos: Panteion University of Social and Political Sciences
Konstantinos Rontos: University of the Aegean
Chara Vavoura: Panteion University
Ioannis Vavouras: Panteion University of Social and Political Sciences

Chapter Chapter 2 in The Role of the Public Sector in Building Social and Economic Resilience, 2024, pp 13-31 from Springer

Abstract: Abstract Over the last fifty years, and more specifically during the period 1974–2022 known as the “Third Hellenic Republic,” Greece exhibits the pattern of severe political budget cycles, or electoral fiscal cycles, causing the country’s public debt to soar to unprecedented levels and possibly impeding its economic growth. In this paper, we aim to assess the impact of political budget cycles on the Greek economy. To this end, first, we quantify the effects of electoral cycles on the Greek actual budget balance, to evaluate the significance of political budget cycles on the accumulation of public debt in Greece in the post-1974 period. Secondly, we explore whether general or national elections affect the country’s GDP and estimate the extent to which this effect has played a stabilizing or a destabilizing role in the long-run evolution of the Greek economy.

Keywords: Political budget cycles; General elections; External balance; Economic growth; Greek economy; Destabilizing effects (search for similar items in EconPapers)
JEL-codes: D72 E62 H62 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:spr:sprchp:978-3-031-67702-1_2

Ordering information: This item can be ordered from
http://www.springer.com/9783031677021

DOI: 10.1007/978-3-031-67702-1_2

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().