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Fiscal conservatism in a new democracy: "Sophisticated" versus "naïve" voters

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Author Info
Arvate, Paulo Roberto
Avelino, George
Tavares, José

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Abstract

We use data from gubernatorial elections in Brazil to test the electoral reactions of "sophisticated" and "naïve" voters to fiscal surpluses. Our results complement Brender and Drazen [Brender, Adi, and Drazen, A., (2005b), "How do budget deficits and economic growth affect reelection prospects? Evidence from a large cross-section of countries", NBER Working Paper 11862, National Bureau of Economic Research, Cambridge, Massachusetts]: we find no evidence of fiscal illusion while, in some cases, a fiscal surplus may actually increase the probability of reelection.

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Publisher Info
Article provided by Elsevier in its journal Economics Letters.

Volume (Year): 102 (2009)
Issue (Month): 2 (February)
Pages: 125-127
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Handle: RePEc:eee:ecolet:v:102:y:2009:i:2:p:125-127

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Related research
Keywords: Budget deficits Elections Political cycles Fiscal conservatism;

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Alberto Alesina & Roberto Perotti & José Tavares, 1998. "The Political Economy of Fiscal Adjustments," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(1998-1), pages 197-266. [Downloadable!]
  2. Nordhaus, William D, 1975. "The Political Business Cycle," Review of Economic Studies, Blackwell Publishing, vol. 42(2), pages 169-90, April. [Downloadable!] (restricted)
  3. Brender, Adi, 2003. "The effect of fiscal performance on local government election results in Israel: 1989-1998," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2187-2205, September. [Downloadable!] (restricted)
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This page was last updated on 2009-11-7.

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