Political Effects on the Allocation of Public Expenditures: Empirical Evidence from OECD Countries

Niklas Potrafke

No 653, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper examines the effects of political determinants on the allocation of public expenditures. Analyzing an OECD panel from 1990 to 2004, a SURE model controls for the contemporaneous correlation between the different expenditure categories (COFOG). I find that left governments set other priorities than right governments: In particular, they increase spending for "Environment protection", "Recreation; Culture and Religion" and "Education". The number of coalition partners as well as minority governments affects the allocation of public expenditures, too. In contrast, there are no election and pre-election year effects.

Keywords: Allocation of public expenditures; partisan politics (search for similar items in EconPapers)
JEL-codes: D72 E62 H50 (search for similar items in EconPapers)
Pages: 21 p.
Date: 2006
New Economics Papers: this item is included in nep-cse, nep-mac, nep-pbe and nep-pol
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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