model for the period 1999-2004 and various election indicators we find strong evidence that the Stability and Growth Pact … has not restricted fiscal policy makers in the euro area in pursuing expansionary policies before elections. In an … election-year but not in the year prior to the election the budget deficit increases. This result is in line with third …

model for the period 1999-2004 and various election indicators we find strong evidence that the Stability and Growth Pact … has not restricted fiscal policy makers in the euro area in pursuing expansionary policies before elections. In an … election-year but not in the year prior to the election the budget deficit increases. This result is in line with third …

In this paper we study the link between elections, fiscal policy and aggregate fluctuations. The set-up is a stylized … dynamic stochastic general equilibrium model incorporating both technology and political re-election shocks. The later are … incorporated via a two-party model with elections. The main theoretical prediction is that forward-looking incumbents, with …

model for the period 1999-2004 and various election indicators we find strong evidence that the Stability and Growth Pact … has not restricted fiscal policy makers in the euro area in pursuing expansionary policies before elections. In an … election-year - but not in the year prior to the election - the budget deficit increases. This result is in line with third …