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Local political business cycles: Evidence from Philippine municipalities

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  • Labonne, Julien

Abstract

This paper establishes the existence of short-term political business cycles in the Philippines over the period 2003–2009. Examining a balanced panel of 1143 municipalities shows that employment levels increase in the two pre-electoral quarters and drop sharply in the two quarters following elections. Further results are consistent with the cycles being generated by incumbents' attempts to increase their chances of re-election. Cycles are stronger in sectors that incumbents are more able to influence, and when they expect stronger electoral competition. Evidence suggests that these cycles are detrimental to development.

Suggested Citation

  • Labonne, Julien, 2016. "Local political business cycles: Evidence from Philippine municipalities," Journal of Development Economics, Elsevier, vol. 121(C), pages 56-62.
    • Handle: RePEc:eee:deveco:v:121:y:2016:i:c:p:56-62
    DOI: 10.1016/j.jdeveco.2016.03.004
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    More about this item

    Keywords

    Elections; Employment; Decentralization;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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