The Effects of Electoral Incentives on Fiscal Policy: Evidence from a Legislative Change at the Local Government Level

Veiga, Linda Gonçalves; Veiga, Francisco José

doi:10.1093/jleo/ewy027

Cited by 9 publications

(1 citation statement)

References 49 publications

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“…Implementing the main objectives of government fiscal policy and public finance management aimed at realistic budget planning, pursuing a coherent fiscal policy to avoid the pro-cyclical impact of the budget on the economy, ensuring priority government policies and limiting inefficient spending and structures, are a prerequisite for increasing economic activity and growth in the country (Castro, Martins, 2018;Veiga, Veiga, 2019). Compared to 2019, in 2020 higher costs were incurred, mainly related to the measures taken to prevent the spread of COVID-19 and its treatment, measures to support business and social measures to reduce the negative effects of the pandemic.…”

Section: Economic Activities and Servicesmentioning

confidence: 99%

Impact of Public Expenditures on the Dynamics of Economic Development of the Republic of Bulgaria

Mitkov¹

2022

ees

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Introduction. Regardless of the degree of government intervention in the economy, government spending is huge and often dominant in fiscal policy. Given the fact that costs are the main tool for fulfilling the economic and social functions of the state, adequate measures are needed to maximize their provision. The main goal of economic policy in Bulgaria is to ensure high economic growth in order to reach the average levels of Gross Domestic Product (GDP) per capita in the EU, therefore it is requires to identify all instruments that can affect the level of aggregate production. Aim and tasks. The purpose of this study is to analyze the main factors influencing the effectiveness of government spending on the basis of in-depth analysis and guidance on the implementation of public spending in the Republic of Bulgaria. The following main tasks have been set for the realization of the stated goal: disclosure of the essence and content, through theoretical statements about gross domestic product and government spending; carrying out an analysis of gross domestic product for the period 2010-2020; carrying out an analysis of government expenditures for the period 2010-2020; establishing a link between development of gross domestic product and government spending for the period 2010-2020. Results. Public spending has the potential to play the role of a kind of public lever for reducing the risks of poverty and social exclusion only when it is focused on the real causes of the problem and reaches the ultimate beneficiaries of the system. In 2020, compared to 2010, the gross domestic product increased by a little over BGN 46 million or by 63.8%. The effect of the crisis was reflected in the main macroeconomic aggregates, with a negative rate of -0.4 compared to 2019. In 2020, compared to 2010, government spending increased by just over BGN 20 million or 76.4%. Conclusions. During the considered period 2010-2020, there is a continuous economic growth both compared to the base year and compared to each subsequent year. For the entire period of the study, the pace of development of government expenditures outpaces the pace of GDP development. For the period 2010-2020 consolidated expenditures form a real share of redistribution through public finances in the ratio of about 35-40 percent of gross domestic product.

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Section: Economic Activities and Servicesmentioning

confidence: 99%

Impact of Public Expenditures on the Dynamics of Economic Development of the Republic of Bulgaria

Mitkov¹

2022

ees

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Who should you vote for? Empirical evidence from Portuguese local governments

Gabriel¹

2019

Port Econ J

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The economic literature considers voters quasi-rational agents that care about maximizing their individual welfare when deciding on who to vote for. Voters believe that, once a politician is elected, his or her characteristics will affect policy outcomes and consequently their private welfare. To assess whether mayors' characteristics influence municipalities' financial performance, I use a dataset composed of 278 Portuguese mainland municipalities from 2003 to 2016. I find that mayors' age, education, occupation, and tenure influence the level of public investment, tax revenues, debt, and budget balances. Although most of the Portuguese voters only consider candidates' political affiliation when deciding on who to vote for, my estimates do not show any significant impact of this characteristic on the financial indicators analyzed. Therefore, these results question the way Portuguese vote by arguing that, when voting for local government representatives, they should care about other characteristics among candidates besides their political affiliation.

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Electoral incentives and Public Employees’ Retirement Systems in Brazilian municipalities

Schettini

Terra

2019

Public Choice

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The Effects of Electoral Incentives on Fiscal Policy: Evidence from a Legislative Change at the Local Government Level

Cited by 9 publications

References 49 publications

Impact of Public Expenditures on the Dynamics of Economic Development of the Republic of Bulgaria

Impact of Public Expenditures on the Dynamics of Economic Development of the Republic of Bulgaria

Who should you vote for? Empirical evidence from Portuguese local governments

Electoral incentives and Public Employees’ Retirement Systems in Brazilian municipalities

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