Streb, Jorge M.; Lema, Daniel; Garofalo, Pablo - In: ECONOMIA JOURNAL OF THE LATIN AMERICAN AND CARIBBEAN … (2012)
We build a panel with quarterly data from Latin American and OECD countries over the 1980-2005 period. Annual data strongly underestimate the effect of political budget cycles (PBCs) when a pre-electoral fiscal expansion is followed by a post-electoral contraction, since the effects cancel out...