This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

An Empirical Investigation of the Strategic Use of Debt

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Per Pettersson-Lidbom
Abstract

The paper examines the accumulation of debt by Swedish local governments. I find that right-wing governments accumulate more debt when facing a higher probability of defeat, whereas the opposite occurs for left-wing governments. These effects are sizable: a right-wing government increases its level of debt by 15 percent, whereas a left-wing government decreases its debt by 11 percent if they are both certain of being replaced as compared to when they are certain of remaining in office. The results are consistent with the predictions from a strategic debt model developed by Persson and Svensson.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.journals.uchicago.edu/cgi-bin/resolve?JPE019307PDF
File Format: application/pdf
File Function: main text
Download Restriction: A link to the University of Chicago Press online edition may require you to be a subscriber to this journal to access the full text, unless the article is not yet subject to access control.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by University of Chicago Press in its journal Journal of Political Economy.

Volume (Year): 109 (2001)
Issue (Month): 3 (June)
Pages: 570-583
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:ucp:jpolec:v:109:y:2001:i:3:p:570-583

Contact details of provider:
Postal: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637
Fax: (773) 753-0811
Email:
Web page: http://www.journals.uchicago.edu/JPE/home.html

Order Information:
Web: http://www.journals.uchicago.edu/JPE/order1.html

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords:

Cited by:
(explanations, 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. Maria Manuel Pinho, 2004. "Political models of budget deficits: a literature review," FEP Working Papers 138, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  2. John Ashworth & Benny Geys & Bruno Heyndels, 2005. "Government Weakness and Local Public Debt Development in Flemish Municipalities," International Tax and Public Finance, Springer, vol. 12(4), pages 395-422, August. [Downloadable!] (restricted)
  3. Henrik Jordahl, 2006. "An economic analysis of voting in Sweden," Public Choice, Springer, vol. 127(3), pages 251-265, June. [Downloadable!] (restricted)
    Other versions:
  4. Svaleryd, Helena & Vlachos, Jonas, 2007. "Political Rents in a Non-Corrupt Democracy," Working Paper Series 698, Research Institute of Industrial Economics, revised 26 Mar 2008. [Downloadable!]
    Other versions:
  5. Marcela Eslava, 2006. "The Political Economy of Fiscal Policy: Survey," RES Working Papers 4487, Inter-American Development Bank, Research Department. [Downloadable!]
  6. Egil Matsen & Øystein Thøgersen, 2007. "Habit formation, strategic extremism and debt policy," Working Paper Series 9007, Department of Economics, Norwegian University of Science and Technology. [Downloadable!]
    Other versions:
  7. Toke S. Aidt & Francisco José Veiga & Linda Gonçalves Veiga, 2007. "Election Results and Opportunistic Policies: An Integrated Approach," NIPE Working Papers 24/2007, NIPE - Universidade do Minho. [Downloadable!]
    Other versions:
  8. Maria Manuel Pinho, 2008. "The political economy of public spending composition: evidence from a panel of OECD countries," FEP Working Papers 295, Universidade do Porto, Faculdade de Economia do Porto. [Downloadable!]
  9. Pettersson-Lidbom , Per, 2003. "Do Parties Matter for Fiscal Policy Choices? A Regression-Discontinuity Approach," Research Papers in Economics 2003:15, Stockholm University, Department of Economics. [Downloadable!]
  10. Pettersson Lidbom, Per, 2003. "Does the Size of the Legislature Affect the Size of Government? Evidence from a Natural Experiment," Research Papers in Economics 2003:18, Stockholm University, Department of Economics. [Downloadable!]
  11. Svaleryd, Helena, 2007. "Women's Representation and Public Spending," Working Paper Series 701, Research Institute of Industrial Economics. [Downloadable!]
    Other versions:
  12. Lars P. Feld & Christoph A. Schaltegger, 2004. "Do Large Cabinets Favor Large Governments? Evidence from Swiss Sub-federal Jurisdictions," Marburg Working Papers on Economics 200421, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung). [Downloadable!]
    Other versions:
  13. Antoni Castells & Alejandro Esteller & Maite Vilalta, 2004. "Full Characterisation of the Political Economy of Fiscal Adjustment: Evidence from Spanish Municipalities," Working Papers 2004/3, Institut d'Economia de Barcelona (IEB). [Downloadable!]
  14. Pedro Escudero Fernández & Diego Prior, 2002. "Endeudamiento y ciclos políticos presupuestarios: el caso de los ayuntamientos catalanes," Working Papers 200210, Department of Business Economics, Universitat Autonoma de Barcelona. [Downloadable!]
  15. Francisco José Veiga & Linda Gonçalves Veiga, 2004. "Political Business Cycles at the Municipal Level," NIPE Working Papers 4/2004, NIPE - Universidade do Minho. [Downloadable!]
    Other versions:
  16. Vlachos, Jonas, 2005. "Does Labour Market Risk Increase the Size of the Public Sector? Evidence from Swedish Municipalities," CEPR Discussion Papers 5091, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
  17. Svaleryd, Helena, 2002. "Femal Representation - Is it Important for Policy Decisions?," Research Papers in Economics 2002:7, Stockholm University, Department of Economics. [Downloadable!]
  18. Jon H. Fiva & Gisle James Natvik, 2009. "Do Re-election Probabilities Influence Public Investment?," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
    Other versions:
  19. Stijn Goeminne & Benny Geys & Carine Smolders, 2008. "Political fragmentation and projected tax revenues: evidence from Flemish municipalities," International Tax and Public Finance, Springer, vol. 15(3), pages 297-315, June. [Downloadable!] (restricted)
  20. Martial Foucault & Thierry Madies & Sonia Paty, 2008. "Public spending interactions and local politics. Empirical evidence from French municipalities," Public Choice, Springer, vol. 137(1), pages 57-80, October. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? Over 80% of the top 1000 economists are registered on RePEc.

This page was last updated on 2009-12-12.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.