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Political budget cycles and fiscally conservative voters

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  • Garmann, Sebastian

Abstract

I test whether the political budget cycle depends on the level of fiscal conservatism among voters. To this end, I use data from a referendum to collect revealed preferences for fiscal conservatism. I find that pre-election spending is increased only if voters have a sufficiently low level of fiscal conservatism. If voters are highly fiscally conservative, incumbents even decrease spending before elections.

Suggested Citation

  • Garmann, Sebastian, 2017. "Political budget cycles and fiscally conservative voters," Economics Letters, Elsevier, vol. 155(C), pages 72-75.
    • Handle: RePEc:eee:ecolet:v:155:y:2017:i:c:p:72-75
    DOI: 10.1016/j.econlet.2017.03.023
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    References listed on IDEAS

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    Cited by:

    1. Maxime Menuet & Patrick Villieu & Marcel Voia, 2021. "Does public debt secure social peace? A diversionary theory of public debt management," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 57(3), pages 475-501, October.
    2. Lenka Maličká, 2019. "Political Expenditure Cycle at the Municipal Government Level in Slovakia," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 67(2), pages 503-513.
    3. Dirk Foremny & Ronny Freier & Marc-Daniel Moessinger & Mustafa Yeter, 2018. "Overlapping political budget cycles," Public Choice, Springer, vol. 177(1), pages 1-27, October.
    4. Florian Dorn, 2021. "Elections and Government Efficiency," ifo Working Paper Series 363, ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
    5. Dorn, Florian, 2023. "Elections and Government Efficiency," VfS Annual Conference 2023 (Regensburg): Growth and the "sociale Frage" 277700, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    Political budget cycles; Fiscal conservatism; Conditionality;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

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