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Political Business Cycles in Local Employment

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Abstract

Using employment data for municipalities, we find strong evidence of political business cycles. Employment increases shortly before elections mainly in municipalities where the mayor´s party has a majority of deputies in the municipal assembly and where she is running for reelection. Classification-JEL: D72, H7.

Suggested Citation

  • Cesar Alberto Campos Coelho & Francisco José Veiga & Linda Gonçalves Veiga, 2005. "Political Business Cycles in Local Employment," NIPE Working Papers 13/2005, NIPE - Universidade do Minho.
  • Handle: RePEc:nip:nipewp:13/2005
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    References listed on IDEAS

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    1. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
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    4. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," Review of Economic Studies, Oxford University Press, vol. 58(2), pages 277-297.
    5. Rogoff, Kenneth, 1990. "Equilibrium Political Budget Cycles," American Economic Review, American Economic Association, vol. 80(1), pages 21-36, March.
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    More about this item

    Keywords

    Political business cycles; local governments; employment; Portugal.;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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