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Do electoral cycles affect local financial health?

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  • Isabel-María García-Sánchez
  • Noemí Mordán
  • Beatriz Cuadrado-Ballesteros

Abstract

The main purpose of this study is to determine whether the proximity to elections impacts on the financial health of local governments. This constitutes an original approach to understand the importance of monitoring politicians' actions, especially when elections are coming. Using a sample of 153 Spanish local governments for the period 1988–2008, we find the existence of an electoral cycle, since electoral proximity damages the financial health of local governments. Concretely, the use of public resources with the opportunistic aim of being re-elected damages the local solvency, the capacity to provide public services, and the capacity of preserving social welfare, since municipalities becoming more dependent on resources from other levels of government. Furthermore, we find a partisan cycle too, since municipalities governed by left-wing parties are usually under worse financial health than other municipalities because they lose capacity to adapt to economic and financial changes.

Suggested Citation

  • Isabel-María García-Sánchez & Noemí Mordán & Beatriz Cuadrado-Ballesteros, 2014. "Do electoral cycles affect local financial health?," Policy Studies, Taylor & Francis Journals, vol. 35(6), pages 533-556, November.
    • Handle: RePEc:taf:cposxx:v:35:y:2014:i:6:p:533-556
    DOI: 10.1080/01442872.2014.971727
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    Cited by:

    1. Francisco Bastida, 2023. "Political economics and citizens’ engagement in Croatia: a differential analysis," Public Sector Economics, Institute of Public Finance, vol. 47(1), pages 41-70.

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