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Bring Out the Steamrollers - It's Election Year Again!

Author

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  • Jonas Klarin

Abstract

I test for the presence of election cycles within the budget composition in Swedish municipalities. I find that local governments increase expenditures that are visible to voters in election years. Other expenditures do not decrease, and as a consequence total spending increases. Budget balance is achieved by an increase in intergovernmental grants. I also find suggestive evidence that municipalities with the same political affiliation as the ruling central government receive more grants and spend more on visible expenditures.

Suggested Citation

  • Jonas Klarin, 2020. "Bring Out the Steamrollers - It's Election Year Again!," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 76(1), pages 29-56.
    • Handle: RePEc:mhr:finarc:urn:doi:10.1628/fa-2019-0012
    DOI: 10.1628/fa-2019-0012
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    Citations

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    Cited by:

    1. Federico Revelli & Roberto Zotti, 2019. "The sacred and the profane of budget cycles: evidence from Italian municipalities," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(6), pages 1446-1477, December.
    2. Manuela Krause & Niklas Potrafke, 2020. "The Real Estate Transfer Tax and Government Ideology: Evidence from the German States," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 76(1), pages 100-120.

    More about this item

    Keywords

    political budget cycles; expenditure composition; visible spending; intergovernmental grants; local governments;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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