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. We find that in election years with fiscal rules in place, public consumption is reduced by 1.6 percentage point of GDP … as compared to election years without these rules. This impact is equivalent to a reduction by a third of the volatility …
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Do voters punish governments that introduce fiscal "austerity" measures? If so, does voter response vary according to the design (composition) of fiscal adjustments? What determines the timing of fiscal consolidations? The empirical literature on the political economy of fiscal adjustments,...
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This paper tests the joint hypotheses that policymakers engage in fiscal policy opportunism and that voters respond by rewarding that opportunism with higher vote margins. Furthermore, it investigates the impact of fiscal illusion on the previous two dimensions. Empirical results, obtained with...
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