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Does government ideology influence budget composition? Empirical evidence from OECD countries

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  • Niklas Potrafke

    ()
    (Department of Economics, University of Konstanz, Germany)

Abstract

This paper examines whether government ideology has influenced the allocation of public expenditures in OECD countries. I analyze two datasets that report different expenditure categories and cover the time periods 1970-1997 and 1990-2006, respectively. The results suggest that government ideology has had a rather weak influence on the composition of governments’ budgets. Leftist governments, however, increased spending on “Public Services” in the period 1970-1997 and on “Education” in the period 1990-2006. These findings imply, first, that government ideology hardly influenced budgetary affairs in the last decades, and thus, if ideology plays a role at all, it influences non-budgetary affairs. Second, education has become an important expenditure category for leftist parties to signal their political visions to voters belonging to all societal groups.

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Paper provided by Department of Economics, University of Konstanz in its series Working Paper Series of the Department of Economics, University of Konstanz with number 2010-16.

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Length: 38 pages
Date of creation: 13 Dec 2010
Date of revision:
Handle: RePEc:knz:dpteco:1016

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Keywords: budget composition; public expenditures; government ideology; partisan politics; education policy; panel data;

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Cited by:
  1. Fuchs, Andreas & Dreher, Axel & Nunnenkamp, Peter, 2014. "Determinants of Donor Generosity: A Survey of the Aid Budget Literature," World Development, Elsevier, vol. 56(C), pages 172-199.
  2. Björn Kauder & Niklas Potrafke, 2013. "Government Ideology and Tuition Fee Policy: Evidence from the German States," CESifo Economic Studies, CESifo, vol. 59(4), pages 628-649, December.
  3. Kaushik, Arun & Rupayan Pal, 2012. "Political strongholds and budget allocation for developmental expenditure: Evidence from Indian states, 1971-2005," Indira Gandhi Institute of Development Research, Mumbai Working Papers 2012-015, Indira Gandhi Institute of Development Research, Mumbai, India.
  4. Angelopoulos, Konstantinos & Economides, George & Kammas, Pantelis, 2012. "Does cabinet ideology matter for the structure of tax policies?," European Journal of Political Economy, Elsevier, vol. 28(4), pages 620-635.
  5. Jeroen Klomp & Jakob de Haan, 2013. "Conditional Election and Partisan Cycles in Government Support to the Agricultural Sector: An Empirical Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(4), pages 793-818.
  6. Niklas Potrafke, 2013. "Evidence on the political principal-agent problem fromvoting on public finance for concert halls," Ifo Working Paper Series Ifo Working Paper No. 164, Ifo Institute for Economic Research at the University of Munich.
  7. Viktor Brech & Niklas Potrafke, 2013. "Donor Ideology and Types of Foreign Aid," CESifo Working Paper Series 4314, CESifo Group Munich.
  8. Björn Kauder & Niklas Potrafke, 2013. "Regierungsideologie und Studiengebühren in den deutschen Bundesländern," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 66(10), pages 19-24, 05.
  9. Agnese Sacchi & Simone Salotti, 2012. "A comprehensive anlysis of expenditure decentralization and of the composition of local public spending," Departmental Working Papers of Economics - University 'Roma Tre' 0155, Department of Economics - University Roma Tre.
  10. Soeren Enkelmann & Markus Leibrecht, 2013. "Political Expenditure Cycles and Election Outcomes Evidence from Disaggregation of Public Expenditures by Economic Functions," Working Paper Series in Economics 275, University of Lüneburg, Institute of Economics.
  11. Patrick Laurency & Dirk Schindler, 2011. "International Climate Agreements, Cost Reductions and Convergence of Partisan Politics," CESifo Working Paper Series 3591, CESifo Group Munich.

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