Journal article | Zeitschriftenartikel

Are there Political Budget Cycles in the Euro Area?

This article examines whether there is a political budget cycle (PBC) in countries in the euro area. Using a multivari ate model for 1999–2004 and various election indicators we find strong evidence that, since the start of the Stability and Growth Pact, fiscal policy-makers in the euro area have pursued expansionary policies before elections. In an election year – but not in the year prior to the election – the budget deficit increases. This result is in line with third-generation PBC models, which are based on moral hazard. We also find a significant but small partisan effect on fiscal policy outcomes.

Are there Political Budget Cycles in the Euro Area?

Urheber*in: Mink, Mark; Haan, Jakob de

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Extent
Seite(n): 191-211
Language
Englisch
Notes
Status: Postprint; begutachtet (peer reviewed)

Bibliographic citation
European Union Politics, 7(2)

Subject
Wirtschaft
Öffentliche Finanzen und Finanzwissenschaft
Wirtschaftspolitik

Event
Geistige Schöpfung
(who)
Mink, Mark
Haan, Jakob de
Event
Veröffentlichung
(where)
Vereinigtes Königreich
(when)
2006

DOI
URN
urn:nbn:de:0168-ssoar-228983
Rights
GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
Last update
21.06.2024, 4:27 PM CEST

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Object type

  • Zeitschriftenartikel

Associated

  • Mink, Mark
  • Haan, Jakob de

Time of origin

  • 2006

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