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Budget Deficits and Democracy: The Case of Turkey

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  • Hakan HOTUNLUOĞLU
  • Recep TEKELİ

Abstract

There is a vast body of literature on the political economy of budget deficits. These studies used different models to explain the political motivations behind budget deficits. There are some studies to explain the budget deficit in developed countries and assume that budget deficit is an expected outcome of fiscal policy in democratic countries. However, the studies have come to conclusion before analyzing whether the democracy affects budget deficit or not. To our knowledge there have not been many studies to explain whether the level of a country’s democracy affects budget deficits or not. In this paper, we will show a country’s level of democracy has a positive effect on budget deficit using a single country: Turkey.

Suggested Citation

  • Hakan HOTUNLUOĞLU & Recep TEKELİ, 2013. "Budget Deficits and Democracy: The Case of Turkey," Sosyoekonomi Journal, Sosyoekonomi Society, issue 19(19).
    • Handle: RePEc:sos:sosjrn:130117
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    1. Salih BARIŞIK & Abdullah BARIS, 2017. "Impact of governance on budget deficit in developing countries," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(2(611), S), pages 111-130, Summer.

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    More about this item

    Keywords

    Budget Deficits; Democracy; Political Budget Deficit.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

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