The effects of fiscal decentralisation on the strength of political budget cycles in local expenditure

Köppl‐Turyna, Monika; Kula, Grzegorz; Balmas, Agata; Waclawska, Kamila

doi:10.1080/03003930.2016.1181620

Cited by 33 publications

(22 citation statements)

References 30 publications

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“…In the case of per capita capital municipal expenditure, the political cycle in Slovakia is not present, contrary to results of hereinbefore researches, where the municipal political budget cycle tends to raise the expenditure in more visible areas. Investigating the correlation between both political cycle variables and expenditure COFOG divisions, the positive correlation dominates in the case of election year variable use and its relevant values are observed in the divisions of Economic affairs, Housing and community amenities and Recreation, culture and religion, similarly to results presented by Drazen and Eslava (2010), Šťastná (2015), or Köppl-Turyna et al (2015. However, even if presented results are not fully consistent with those of other authors, findings indicate the presence of the municipal political budget cycle.…”

Section: Resultssupporting

confidence: 74%

“…II. Findings about the positive correlation between the election year and expenditure categories partially correspond to those observed in Šťastná (2015), Köppl-Turyna et al (2015) or Drazen and Eslava (2010), where i.a. The expenditure manipulation is linked to housing and leisure.…”

Section: Election Yearsupporting

confidence: 74%

“…Mild pre-election fiscal manipulation with the local budget occurs both at the municipal and state level of government. Köppl-Turyna et al (2015) seek for the fiscal decentralization impact on the strength of local political budget cycle in the case of Polish municipalities, which heavily rely on the block grants allocated by the central budget (Köppl-Turyna et al, 2015: 1). Similarly to results of Štastná (2015) or Furdas et al (2015), changes in municipal expenditure focusing on infrastructure and social area confirm the political budget cycle presence.…”

Section: Literature Reviewmentioning

confidence: 99%

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Political Expenditure Cycle at the Municipal Government Level in Slovakia

Maličká¹

2019

Acta Univ. Agric. Silvic. Mendelianae Brun.

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The idea of the political budget cycle impact on the public expenditure volume and structure raises discussion related mainly to the national government level. Political decision‑making at the sub‑national government level emulates certain common tendencies. In the election time, the political incumbent might seek for re‑election. In aim to increase its own chances, it might manipulate the budget (or fiscal) policy and makes changes in the field of expenditure categories. In this paper, the existence of political expenditure cycle at the municipal level of government in Slovakia is investigated. The dynamic panel data model using the Generalized Method of Moments (GMM) system estimator reveals the positive impact of election year variable on per capita municipal expenditure, while the additional pre‑election year variable is insignificant.

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Section: Resultssupporting

confidence: 74%

Section: Election Yearsupporting

confidence: 74%

Section: Literature Reviewmentioning

confidence: 99%

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Political Expenditure Cycle at the Municipal Government Level in Slovakia

Maličká¹

2019

Acta Univ. Agric. Silvic. Mendelianae Brun.

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“…There is also evidence that governments increase the relative weight of education, social protection, and some sub-components of health expenditure [6], as well as variations related to government ideology [9], with the left more likely to increase spending on education and the right on public services. Several authors have also found that the electoral cycle has a special impact on social expenditure and infrastructure [10].…”

Section: Political Business Cycle (Pbc) Revisitedmentioning

confidence: 99%

Mayors, Using Cultural Expenditure in An Opportunistic Way Improves the Chances of Re-Election, but Do Not Do It: Revisiting Political Budget Cycles

et al. 2020

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This article analyzes whether expenditure on the provision of merit goods, culture, health, education, and sports, by local governments, in medium-sized cities (between 20,000 and 100,000 inhabitants) is tied to the electoral cycle; that is, whether expenditure increases in the run up to an electoral process. Further, we analyze whether the increase in spending on Culture by local governments has any significant effect on the probability of local governments being re-elected. To answer these questions, a database of 350 medium-sized municipalities is used comprising the period 2011 to 2019, when two municipal elections were held in Spain; in 2015 and in 2019. The results confirm that both total spending and spending on culture and sports, are tied to the electoral cycle, while expenditure on other merit goods is not. Moreover, using a logit model, it is confirmed that an increase in culture expenditure has a significant effect on the probability of the government being re-elected. Specifically, a one-third increase in cultural expenditure, as a proportion of total expenditure (e.g., passing from 6% to 8%) at local government level, improves re-election chances by almost 10%.

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“…2 On political budget cycles in the European Union, see Efthyvoulou (2012); on political budget cycles in a larger set of countries, see de Haan and and Klomp and de Haan (2013). Katsimi and Sarantides (2012), Bove et al (in press), Köppl-Turyna et al (2016), and Castro and Martins (2016) investigate how elections influence budget composition and Osterloh (2012) and Potrafke (2012a) examine how elections influence economic performance. Incumbents increased the growth in public health expenditure and were active in creative accounting before elections (Potrafke 2010, Herwartz and Theilen 2014, and Reischmann 2016.…”

Section: Introductionmentioning

confidence: 99%

Electoral cycles in MPs’ salaries: evidence from the German states

Kauder

Krause

Potrafke

2017

Int Tax Public Finance

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The effects of fiscal decentralisation on the strength of political budget cycles in local expenditure

Cited by 33 publications

References 30 publications

Political Expenditure Cycle at the Municipal Government Level in Slovakia

Political Expenditure Cycle at the Municipal Government Level in Slovakia

Mayors, Using Cultural Expenditure in An Opportunistic Way Improves the Chances of Re-Election, but Do Not Do It: Revisiting Political Budget Cycles

Electoral cycles in MPs’ salaries: evidence from the German states

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