Do governments increase public employment in election years? This article answers this question by using data from Sweden and Finland, two countries that are similar in many respects but in which local elections are held at different points in time. These facts make it possible for us to...

This article investigates the power properties of the Sargan test in the presence of measurement errors in dynamic panel data models. The conclusion from Monte Carlo (MC) simulations and an application on the data used by Arellano and Bond (1991), is that in the very likely case of measurement...

This paper examines the dynamic relationship between local government revenues and expenditures in Sweden. Results from a panel of 265 municipalities covered over the time period 1974-87 show that (i) expenditures cause revenues, while revenues do not cause expenditures, (ii) intergovernmental...