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Political Cycles in Public Expenditure: Butter vs Guns

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  • Bove, Vincenzo

    () (University of Essex)

  • Efthyvoulou, Georgios

    () (University of Sheffield)

Abstract

This paper investigates how the timing of elections and government ideological motivations influence the dynamics of social and military expenditure in a panel of 22 OECD countries over the period 1988-2008. Three basic results emerge: First, governments tend to bias outlays towards social expenditure and away from military expenditure at election times. Second, membership in the NATO alliance affects the timing of election-driven military spending manipulations. Third, partisan distinctions are clearly discernible but differ between the two types of expenditure: while certain categories of social expenditure are higher during left administrations, military expenditure are higher during right administrations.

Suggested Citation

  • Bove, Vincenzo & Efthyvoulou, Georgios, 2013. "Political Cycles in Public Expenditure: Butter vs Guns," NEPS Working Papers 7/2013, Network of European Peace Scientists.
  • Handle: RePEc:ris:nepswp:2013_007
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    Cited by:

    1. Antoine Cazals & Pierre Mandon, 2016. "Political Budget Cycles: Manipulation from Leaders or Manipulation from Researchers? Evidence from a Meta-Regression Analysis," Working Papers halshs-01320586, HAL.
    2. Björn Kauder & Manuela Krause & Niklas Potrafke, 2018. "Electoral cycles in MPs’ salaries: evidence from the German states," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(4), pages 981-1000, August.
    3. Potrafke, Niklas, 2017. "Partisan politics: The empirical evidence from OECD panel studies," Journal of Comparative Economics, Elsevier, vol. 45(4), pages 712-750.
    4. Langlotz, Sarah & Potrafke, Niklas, 2016. "Does development aid increase military expenditure?," Working Papers 0618, University of Heidelberg, Department of Economics.
    5. Khani Hoolari, Seyed Morteza & Taghinejad Omran, Vahid, 2017. "Natural Budget Deficit and Natural Political Cyclicality," MPRA Paper 78107, University Library of Munich, Germany.
    6. Gupta, Sanjeev & Liu, Estelle X. & Mulas-Granados, Carlos, 2016. "Now or later? The political economy of public investment in democracies," European Journal of Political Economy, Elsevier, vol. 45(C), pages 101-114.
    7. Antoine Cazals & Pierre Mandon, 2015. "Political Budget Cycles: Manipulation of Leaders or Bias from Research? A Meta-Regression Analysis," Working Papers halshs-01238883, HAL.
    8. Niklas Potrafke, 2015. "The Evidence on Globalisation," The World Economy, Wiley Blackwell, vol. 38(3), pages 509-552, March.
    9. Antoine CAZALS & Pierre MANDON, 2016. "Political Budget Cycles: Manipulation from Leaders or Manipulation from Researchers? Evidence from a Meta-Regression Analysis," Working Papers 201609, CERDI.
    10. Sanjeev Gupta & Estelle X Liu & Carlos Mulas-Granados, 2015. "Now or Later? The Political Economy of Public Investment in Democracies," IMF Working Papers 15/175, International Monetary Fund.

    More about this item

    Keywords

    elections; partisanship; social expenditure; military expenditure;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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