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The political budget cycle (PBC) literature argues that governments expand deficits in election years. However, what happens when an economic downturn is expected? Will the government allow the deficit to expand even further, or will it resort to spending cuts and tax increases? When voters...
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important element of the political process, namely, general (or national) elections, and look into their effects on public … 1974; (ii) to assess whether national elections affect total economic activity in a stabilizing or destabilizing way; and …
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This paper investigates the impact of elections on the level and composition of fiscal instruments using a sample of 19 … find that elections shift public spending towards current and away from capital expenditures. Moreover, although we find no … evidence for an electoral cycle for government deficit and expenditures, we do find a negative effect of elections on revenue …
Persistent link: https://www.econbiz.de/10003923827
A widespread view in the "political budget cycles" literature is that incumbent politicians seek to influence voters' perceptions of their competence and/or preferences by using the composition of the fiscal budget as a signalling tool. However, little is known about whether voters actually...
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