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Election-Related Cycles in Publicly Supplied Goods in Albania

Author

Listed:
  • Holger Kachelein

    (University of Tirana DAAD-Lecturer Economics)

  • Endrit Lami

    (Budapest University of Technology and Economics)

  • Drini Imami

    (Agriculture University of Tirana)

Abstract

It is widely perceived by public opinion that incumbents try to improve the economic situation before elections to impress voters, typically through fiscal and/or monetary expansion policies, creating in this way Political Business Cycles (PBC). However, governments in transition countries may use additional instruments, up to now not covered by the PBC literature. Throughout the transition, the electricity supply has not been regular in Albania, reflected in systematic daily interruptions to supply for households and business throughout the country, seriously affecting their wellbeing. Thus, it is rational that the incumbent commits to improving electricity supply to please the voters before elections, using its monopoly position in the production and supply of electricity. The results confirm our hypotheses that before elections, the supply of electricity increases significantly above usual levels, followed by a contraction after elections.

Suggested Citation

  • Holger Kachelein & Endrit Lami & Drini Imami, 2011. "Election-Related Cycles in Publicly Supplied Goods in Albania," South-Eastern Europe Journal of Economics, Association of Economic Universities of South and Eastern Europe and the Black Sea Region, vol. 9(1), pages 13-25.
    • Handle: RePEc:seb:journl:v:9:y:2011:i:1:p:13-25
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    References listed on IDEAS

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    Cited by:

    1. Halebić Jasmin & Moćević Amina, 2020. "Analysis of Public Debt at Subnational Government Levels: Evidence from Cantons in the Federation of Bosnia and Herzegovina," South East European Journal of Economics and Business, Sciendo, vol. 15(2), pages 109-123, December.
    2. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Post-Print hal-01291401, HAL.
    3. Eric Dubois, 2016. "Political business cycles 40 years after Nordhaus," Public Choice, Springer, vol. 166(1), pages 235-259, January.
    4. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01291401, HAL.

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    More about this item

    Keywords

    Political Business Cycle; Electricity; Albania;
    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
    • P26 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Property Rights
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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