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Democracy, Elections and Government Budget Deficits

Author

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  • Haan Jakob de

    (University of Groningen, Groningen, The Netherlands)

Abstract

I review research on the relationship between democracy and government indebtedness. I first discuss whether the extent to which politicians use fiscal policy for reelection purposes is conditioned by a country’s experience with democracy. Political budget cycles are not confined to young democracies, but evidence suggests that in younger democracies such cycles are more likely and also stronger than in more mature democracies. Next, I discuss whether the use of fiscal policy by the incumbent increases his/her chances for reelection. Research discussed suggests that political parties in government benefit to some extent if fiscal policy turns expansionary before elections occur.

Suggested Citation

  • Haan Jakob de, 2014. "Democracy, Elections and Government Budget Deficits," German Economic Review, De Gruyter, vol. 15(1), pages 131-142, February.
    • Handle: RePEc:bpj:germec:v:15:y:2014:i:1:p:131-142
    DOI: 10.1111/geer.12022
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    Citations

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    Cited by:

    1. Blaise Gnimassoun & Isabelle Do Santos, 2021. "Robust structural determinants of public deficits in developing countries," Applied Economics, Taylor & Francis Journals, vol. 53(9), pages 1052-1076, February.
    2. Beate Jochimsen & Robert Lehmann, 2017. "On the political economy of national tax revenue forecasts: evidence from OECD countries," Public Choice, Springer, vol. 170(3), pages 211-230, March.
    3. Adam Pigoń & Michał Ramsza, 2022. "A Comparison of German, Swiss, and Polish Fiscal Rules Using Monte Carlo Simulations," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 4, pages 17-41.

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