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A new view into political business cycles: Household expenditures in Albania

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  • Kächelein, Holger
  • Imami, Drini
  • Lami, Endrit
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    Abstract

    Over the last decades, there has been plenty of research and articles on Political Business Cycles (PBC), aiming at analyzing and explaining the use of fiscal and monetary instruments to stimulate economic growth before elections, to impress the voters. Following other researches for PBC in Albania, in which there was found clear evidence of fiscal expansion before elections, but no significant changes in inflation and GDP, as theory predicts, we analyze the peoples' expectations related to elections outcomes, and the way these expectations influence their decisions to spend, and consequently the macroeconomic variables. --

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    Bibliographic Info

    Paper provided by Bamberg University, Bamberg Economic Research Group in its series BERG Working Paper Series with number 60.

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    Date of creation: 2008
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    Handle: RePEc:zbw:bamber:60

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    Postal: D-96045 Bamberg
    Phone: 0951/8632687
    Fax: 0951/8632550
    Web page: http://www.uni-bamberg.de/vwl/forschung/berg/
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    Related research

    Keywords: Political Business Cycle; Household Behaviour; Albanian;

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    1. Treier, Volker, 1999. "Unemployment in reforming countries: Causes, fiscal impacts and the success of transformation," BERG Working Paper Series 29, Bamberg University, Bamberg Economic Research Group.
    2. Kola, Tonin & Liko, Elida, 2008. "An empirical assessment of alternative exchange rate regimes in medium term in Albania," BERG Working Paper Series 58, Bamberg University, Bamberg Economic Research Group.
    3. Matthias Wrede, 2000. "Shared Tax Sources and Public Expenditures," International Tax and Public Finance, Springer, vol. 7(2), pages 163-175, March.
    4. Kächelein, Holger, 2004. "Capital Tax Competition and Partial Cooperation : Welfare Enhancing or not?," BERG Working Paper Series 51, Bamberg University, Bamberg Economic Research Group.
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    6. Kremer, Jana, 1999. "Arbeitslosigkeit und Steuerpolitik," BERG Working Paper Series 32, Bamberg University, Bamberg Economic Research Group.
    7. Bernd Hayo & Matthias Wrede, 2003. "Fiscal Equalisation: Principles and an Application to the European Union," CESifo Working Paper Series 845, CESifo Group Munich.
    8. Nusser, Michael, 1999. "The implications of wage structure rigidity on human capital accumulation, economic growth and unemployment: A Schumpeterian approach to endogenous growth theory," BERG Working Paper Series 28, Bamberg University, Bamberg Economic Research Group.
    9. Hafner, Kurt A., 2005. "Agglomeration, Migration and Tax Competition," BERG Working Paper Series 52, Bamberg University, Bamberg Economic Research Group.
    10. Wrede, Matthias, 1999. "A note on reliefs for traveling expenses to work," BERG Working Paper Series 30, Bamberg University, Bamberg Economic Research Group.
    11. Szüle, Borbála, 2003. "Inside financial conglomerates: Effects in the Hungarian pension fund markets," BERG Working Paper Series 42, Bamberg University, Bamberg Economic Research Group.
    12. Thiel, Elke, 2004. "European Integration of Albania : Economic Aspects," BERG Working Paper Series 49, Bamberg University, Bamberg Economic Research Group.
    13. Malaj, Arben & Mema, Fatmir, 2003. "Strategic privatisation: Its achievements and challenges," BERG Working Paper Series 41, Bamberg University, Bamberg Economic Research Group.
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