Arbeitspapier

Vote Buying or (Political) Business (Cycles) as Usual?

We study the short-run effect of elections on monetary aggregates in a sample of 85 low and middle income democracies (1975-2009). We find an increase in the growth rate of M1 during election months of about one tenth of a standard deviation. A similar effect can neither be detected in established OECD democracies nor in other months. We argue that the cycle is related to systemic vote buying which requires significant amounts of cash at election times. The finely timed increase in M1 is consistent with this and it cannot be, fully, accounted for by alternative explanations.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 5508

Klassifikation
Wirtschaft
Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
Money Supply; Credit; Money Multipliers
Economic Development: General
Thema
political business cycles
vote buying
monetary economies

Ereignis
Geistige Schöpfung
(wer)
Aidt, Toke
Asatryan, Zareh
Badalyan, Lusine
Heinemann, Friedrich
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2015

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
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Objekttyp

  • Arbeitspapier

Beteiligte

  • Aidt, Toke
  • Asatryan, Zareh
  • Badalyan, Lusine
  • Heinemann, Friedrich
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2015

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