Parties Matter in Allocating Expenditures: Evidence from Germany

Arbeitspapier

I test if parties matter with respect to the allocation of public expenditures in Germany. Considering the allocation of rights and duties due to the federal structure, two econometric models are estimated. First, a SURE model analyses spending at the federal level for the period from 1950 to 2003 and finds evidence for partisan politics and election year effects. Second, I examine the spending behaviour in the states from 1974 to 2004 in a panel data framework. In comparison to the federal level, policy has weaker impacts on the allocation of expenditures in the states.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: DIW Discussion Papers ; No. 652

Classification and Topics

• Classification: Wirtschaft ; State and Local Budget and Expenditures ; National Government Expenditures and Related Policies: General ; Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
• Subject: allocation of public expenditures ; partisan politics ; fiscal federalism

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Potrafke, Niklas
• Event: Veröffentlichung
• (who): Deutsches Institut für Wirtschaftsforschung (DIW)
• (where): Berlin
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/18545
• Last update: 10.03.2025, 11:45 AM CET