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autonomously by German municipalities. As election dates vary across local councils, the data allows us to disentangle effects … behavior as the growth rate of the local business tax is significantly reduced in the election year and the year prior to the … election, while it jumps up in the year after the election. This pattern turns out to be robust against a number of sensitivity …
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This paper analyzes local political cycle in Czech municipalities over the period between 1997 and 2013. We apply the system GMM and the difference GMM estimators to identify distortion in current and capital expenditures per capita in electoral and pre-electoral years, while focusing on various...
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A standard finding in the literature on political agency is that voters punish incumbents who raise taxes. Typically, only the reaction of a representative voter is considered, with the notion that all voters dislike high taxes because the revenue is, at least on the margin, spent on...
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The introduction of a new real estate taxes in Italy in 2011 generated a natural experiment, which is useful to test political budget cycles, i.e. the strategic choice of fiscal variables in relation to elections. We do find substantial evidence of political budget cycles, with municipalities...
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