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

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  • Potrafke, Niklas

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 University of Munich, Department of Economics in its series Munich Reprints in Economics with number 19278.

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Date of creation: 2011
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Publication status: Published in Economics of Governance 2 12(2011): pp. 101-134
Handle: RePEc:lmu:muenar:19278

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Citations

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Cited by:
  1. Viktor Brech & Niklas Potrafke, 2013. "Donor Ideology and Types of Foreign Aid," CESifo Working Paper Series 4314, CESifo Group Munich.
  2. Niklas Potrafke, 2013. "Evidence on the political principal-agent problem from voting on public finance for concert halls," Constitutional Political Economy, Springer, vol. 24(3), pages 215-238, September.
  3. 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.
  4. Andreas Fuchs & Axel Dreher & Peter Nunnenkamp, 2012. "Determinants of Donor Generosity: A Survey of the Aid Budget Literature," Courant Research Centre: Poverty, Equity and Growth - Discussion Papers 121, Courant Research Centre PEG.
  5. Björn Kauder & Niklas Potrafke, 2013. "Government ideology and tuition fee policy: Evidence from the German states," Ifo Working Paper Series Ifo Working Paper No. 159, Ifo Institute for Economic Research at the University of Munich.
  6. Enkelmann, Sören & Leibrecht, Markus, 2013. "Political expenditure cycles and election outcomes: Evidence from disaggregation of public expenditures by economic functions," Economics Letters, Elsevier, vol. 121(1), pages 128-132.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  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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