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Cycles in a cycle: investment expenditures and their composition during the political budgetary cycle

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  • Łukasz Wiktor Olejnik

Abstract

Previous studies on the Political Budgetary Cycle have used fiscal variables on high levels of aggregation, including, among others, investment expenditure aggregates or capital expenditure aggregates. This article demonstrates the existence of a Political Budgetary Cycle in investment expenditures among Polish local governments, and analyses the composition of investment expenditures during the cycle. Due to the varying visibility of investment expenditures, their composition is also subject to fluctuations. Before elections, there is an increase in investments in culture, tourism and transport infrastructure, and a drop in investments in public safety, education, environmental protection, sports and counteracting social exclusion.

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  • Łukasz Wiktor Olejnik, 2022. "Cycles in a cycle: investment expenditures and their composition during the political budgetary cycle," Local Government Studies, Taylor & Francis Journals, vol. 48(3), pages 640-671, May.
    • Handle: RePEc:taf:flgsxx:v:48:y:2022:i:3:p:640-671
    DOI: 10.1080/03003930.2020.1851207
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