Political Business Cycles in Local Indonesia
We study political business cycles (PBC) in newly democratized and decentralized Indonesia at the local level. As the timing of indirect and later on direct elections of district heads differs exogenously across jurisdictions, the political business cycle effect is clearly identified. Our data allow distinguishing PBCs for indirect and direct elections. We find significant budget cycles for discretionary budget categories at the disposal of the district head (not for the overall budget) only for direct elections, not for indirect elections. These cycles are much larger if the incumbent runs for reelection. Our results underline the conditional nature of PBC.
|Date of creation:||Apr 2013|
|Date of revision:||Apr 2013|
|Contact details of provider:|| Postal: Kollegiengebäde II, Platz der Alten Synagoge, 79085 Freiburg|
Phone: +49 +761 / 203 2301
Fax: +49 +761 / 203 2303
Web page: http://www.vwl.uni-freiburg.de/iwipol/sopo.htm
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fre:wpaper:23. 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: (Günther G. Schulze)
If references are entirely missing, you can add them using this form.