Presidential Election, Checks and Balances, and Allocation of Public Expenditures in Taiwan
Few studies on political budget cycles have directly tested the public budget against changes in the composition of public spending. Meanwhile, previous studies implicitly assume that the executive has full discretionary power over fiscal policy, neglecting the role of the legislature in providing checks and balances. This study goes beyond traditional political budget cycle models and sheds light on a case study for Taiwan over the 1967-2008 period. Our empirical results show that social welfare expenditure is a favored strategy often employed by Taiwan's government in order to enhance the prospects of re-election. However, we find no evidence that election year spending shifts away from capital expenditures towards more visible current expenditures. The results also show that the effective checks and balances of the legislature have no significant influence over Taiwan's political budget cycles. Our conjecture is that Taiwan either as no legislative veto player or there is low compliance with the law during our study period.
Volume (Year): 9 (2013)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: |
Web page: http://www.jem.org.tw/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brender, Adi, 2003. "The effect of fiscal performance on local government election results in Israel: 1989-1998," Journal of Public Economics, Elsevier, vol. 87(9-10), pages 2187-2205, September.
- Perron, Pierre, 1989.
"The Great Crash, the Oil Price Shock, and the Unit Root Hypothesis,"
Econometric Society, vol. 57(6), pages 1361-1401, November.
- Perron, P, 1988. "The Great Crash, The Oil Price Shock And The Unit Root Hypothesis," Papers 338, Princeton, Department of Economics - Econometric Research Program.
- Clémence VERGNE, 2006.
"Democracy, Elections and Allocation of Public Expenditure in Developing Countries,"
- Vergne, Clémence, 2009. "Democracy, elections and allocation of public expenditures in developing countries," European Journal of Political Economy, Elsevier, vol. 25(1), pages 63-77, March.
- Alesina, Alberto, 1987. "Macroeconomic Policy in a Two-party System as a Repeated Game," Scholarly Articles 4552531, Harvard University Department of Economics.
- Bruno Albuquerque, 2010.
"Fiscal Institutions and Public Spending Volatility in Europe,"
w201017, Banco de Portugal, Economics and Research Department.
- Albuquerque, Bruno, 2011. "Fiscal institutions and public spending volatility in Europe," Economic Modelling, Elsevier, vol. 28(6), pages 2544-2559.
- Bruno Albuquerque, 2012. "Fiscal institutions and public spending volatility in Europe," Economic Bulletin and Financial Stability Report Articles, Banco de Portugal, Economics and Research Department.
- Alberto Alesina & Guido Tabellini, 2005.
"Why do Politicians Delegate?,"
784828000000000470, UCLA Department of Economics.
- Alberto Alesina & Guido Tabellini, 2005. "Why Do Politicians Delegate?," NBER Working Papers 11531, National Bureau of Economic Research, Inc.
- Alberto Alesina & Guido Tabellini, 2005. "Why do Politicians Delegate?," Harvard Institute of Economic Research Working Papers 2079, Harvard - Institute of Economic Research.
- Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-72, June.
- International Monetary Fund, 1996.
"Budget Processes and Commitment to Fiscal Discipline,"
IMF Working Papers
96/78, International Monetary Fund.
- von Hagen, Jurgen & Harden, Ian J., 1995. "Budget processes and commitment to fiscal discipline," European Economic Review, Elsevier, vol. 39(3-4), pages 771-779, April.
- Drazen, Allan & Eslava, Marcela, 2010. "Electoral manipulation via voter-friendly spending: Theory and evidence," Journal of Development Economics, Elsevier, vol. 92(1), pages 39-52, May.
- Shi, Min & Svensson, Jakob, 2006. "Political budget cycles: Do they differ across countries and why?," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1367-1389, September.
- Alesina, Alberto, 1987. "Macroeconomic Policy in a Two-Party System as a Repeated Game," The Quarterly Journal of Economics, MIT Press, vol. 102(3), pages 651-78, August.
- Block, Steven A., 2002. "Political business cycles, democratization, and economic reform: the case of Africa," Journal of Development Economics, Elsevier, vol. 67(1), pages 205-228, February.
- Schuknecht, Ludger, 1996. "Political Business Cycles and Fiscal Policies in Developing Countries," Kyklos, Wiley Blackwell, vol. 49(2), pages 155-70.
- Witold Jerzy Henisz, 2004. "Political Institutions and Policy Volatility," Economics and Politics, Wiley Blackwell, vol. 16(1), pages 1-27, 03.
- Diallo, Oumar, 2009. "Tortuous road toward countercyclical fiscal policy: Lessons from democratized sub-Saharan Africa," Journal of Policy Modeling, Elsevier, vol. 31(1), pages 36-50.
- Allan Drazen & Marcela Eslava, 2005. "Electoral Manipulation via Expenditure Composition: Theory and Evidence," NBER Working Papers 11085, National Bureau of Economic Research, Inc.
- Clémence Vergne, 2011. "Democracy, Elections and Allocation of Public Expenditure in Developing Countries," Working Papers halshs-00564572, HAL.
- Engle, Robert F & Granger, Clive W J, 1987. "Co-integration and Error Correction: Representation, Estimation, and Testing," Econometrica, Econometric Society, vol. 55(2), pages 251-76, March.
- Perron, Pierre, 1990.
"Testing for a Unit Root in a Time Series with a Changing Mean,"
Journal of Business & Economic Statistics,
American Statistical Association, vol. 8(2), pages 153-62, April.
- Perron, P., 1989. "Testing For A Unit Root In A Time Series With A Changing Mean," Papers 347, Princeton, Department of Economics - Econometric Research Program.
- Schuknecht, Ludger, 2000. " Fiscal Policy Cycles and Public Expenditure in Developing Countries," Public Choice, Springer, vol. 102(1-2), pages 115-30, January.
When requesting a correction, please mention this item's handle: RePEc:jec:journl:v:9:y:2013:i:1:p:31-53. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su)
If references are entirely missing, you can add them using this form.