Do political budget cycles really exist?

Jeroen Klomp () and Jakob de Haan
Additional contact information
Jeroen Klomp: WUR - Wageningen University and Research [Wageningen]

Post-Print from HAL

Abstract: Most recent cross-country studies on election-motivated fiscal policy assume that the data can be pooled. As various tests suggest that our data for some 70 democratic countries for the period 1970-2007 cannot be pooled, we use the Pooled Mean Group (PMG) estimator to test whether political budget cycles (PBCs) exist in our sample. We find that fiscal policy is only affected by upcoming elections in the short run. Our results suggest that the occurrence of a PBC is conditional on the level of development and democracy, government transparency, the country's political system, its membership of a monetary union and its degree of political polarization.

Keywords: Social; Sciences; &; Humanities (search for similar items in EconPapers)
Date: 2011-09-23
Note: View the original document on HAL open archive server: https://hal.science/hal-00734528
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in Applied Economics, 2011, 45 (03), pp.329-341. ⟨10.1080/00036846.2011.599787⟩

Downloads: (external link)
https://hal.science/hal-00734528/document (application/pdf)

Related works:
Journal Article: Do political budget cycles really exist? (2013)
Journal Article: Do political budget cycles really exist? (2013)
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:hal:journl:hal-00734528

DOI: 10.1080/00036846.2011.599787

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().