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Electoral Cycles, Budget Controls and Public Expenditure

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  • Alt, James
  • Chrystal, K. Alec

Abstract

This paper presents the results of tests of a number of models of public expenditure growth which have achieved wide currency. The main types of models examined are a permanent income model, electoral cycle models, and stabilization policy models. The models are tested with data from Britain and the United States of America and the results are compared with evidence from other countries. The paper concludes that government expenditure grows in proportion to national income because politicians find it convenient to plan that way; electoral-cyclical factors are relatively unimportant in determining public expenditure; there appears to be a limited role for public expenditure in economic stabilization policy; in a comparative context institutions of expenditure control are important in determining relative rates of growth of public sector consumption expenditure.

Suggested Citation

  • Alt, James & Chrystal, K. Alec, 1981. "Electoral Cycles, Budget Controls and Public Expenditure," Journal of Public Policy, Cambridge University Press, vol. 1(1), pages 37-59, February.
    • Handle: RePEc:cup:jnlpup:v:1:y:1981:i:01:p:37-59_00
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    Cited by:

    1. Arwan Gunawan & Winwin Yadiati & Harry Suharman & K. Poppy Sofia, 2020. "Linkages to Budgetary Control and Budgetary Absorption Performance," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 304-316.
    2. Can Sever & Emekcan Yucel, 2020. "Macroprudential Policy and Elections: What Matters? Abstract:," Working Papers 2020/01, Bogazici University, Department of Economics.
    3. Sever, Can & Yücel, Emekcan, 2022. "The effects of elections on macroprudential policy," Journal of Comparative Economics, Elsevier, vol. 50(2), pages 507-533.

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