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Political alternation and the fiscal deficits


  • Rumi, Cecilia


This paper proposes the Index of Political Alternation as a long-run measure of political competition. It expands the empirical literature on political determinants of fiscal performance and presents evidence for Argentina that amplifications of governments' planning horizon enhance fiscal performance.

Suggested Citation

  • Rumi, Cecilia, 2009. "Political alternation and the fiscal deficits," Economics Letters, Elsevier, vol. 102(2), pages 138-140, February.
  • Handle: RePEc:eee:ecolet:v:102:y:2009:i:2:p:138-140

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    References listed on IDEAS

    1. Svensson, Jakob, 1998. "Investment, property rights and political instability: Theory and evidence," European Economic Review, Elsevier, vol. 42(7), pages 1317-1341, July.
    2. repec:cup:apsrev:v:88:y:1994:i:04:p:811-828_09 is not listed on IDEAS
    3. Alberto Alesina & Guido Tabellini, 1990. "A Positive Theory of Fiscal Deficits and Government Debt," Review of Economic Studies, Oxford University Press, vol. 57(3), pages 403-414.
    4. Alberto Alesina & Reza Baqir & William Easterly, 1999. "Public Goods and Ethnic Divisions," The Quarterly Journal of Economics, Oxford University Press, vol. 114(4), pages 1243-1284.
    5. Richard Wagner, 1976. "Revenue structure, fiscal illusion, and budgetary choice," Public Choice, Springer, vol. 25(1), pages 45-61, March.
    6. Alesina, Alberto & Özler, Sule & Roubini, Nouriel & Swagel, Phillip, 1996. "Political Instability and Economic Growth," Journal of Economic Growth, Springer, vol. 1(2), pages 189-211, June.
    7. Jones, Mark P. & Sanguinetti, Pablo & Tommasi, Mariano, 2000. "Politics, institutions, and fiscal performance in a federal system: an analysis of the Argentine provinces," Journal of Development Economics, Elsevier, vol. 61(2), pages 305-333, April.
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    Cited by:

    1. J. Stephen Ferris, 2010. "Fiscal Policy from a Public Choice Perspective," Carleton Economic Papers 10-10, Carleton University, Department of Economics.


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