Fiscal Rules to Tame the Political Budget Cycle
Fiscal Rules to Tame the Political Budget Cycle

Author: Lorenzo Forni

Publisher: International Monetary Fund

Published: 2017-01-20

Total Pages: 20

ISBN-13: 147556998X

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The paper provides evidence that fiscal rules can limit the political budget cycle. It focuses on the application of the Italian fiscal rule at the sub-national level over the period 2004-2006 and shows that: 1) municipalities are subject to political budget cycles in capital spending; 2) the Italian subnational fiscal rule introduced in 1999 has been enforced by the central government; 3) municipalities subject to the fiscal rule show more limited political budget cycles than municipalities not subject to the rule. In order to identify the effect, we rely on the fact that the domestic fiscal rule does not apply to municipalities below 5,000 inhabitants. We find that the political budget cycle increases real capital spending by about 35 percent on average in the years prior to municipal elections and that the sub-national fiscal rule reduces these figures by about two thirds.

Political Cycles in a Developing Economy
Political Cycles in a Developing Economy

Author: Stuti Khemani

Publisher: World Bank Publications

Published: 2000

Total Pages: 58

ISBN-13:

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Empirical results from India suggest that politicians exert greater effort in managing public works during election years. Surprisingly, there is no evidence of a populist spending spree to sway voters just before elections.

Political Business Cycles
Political Business Cycles

Author: Bruno S. Frey

Publisher: Edward Elgar Publishing

Published: 1997

Total Pages: 0

ISBN-13: 9781858983998

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A collection of articles on how the government influences the economy in order to secure re-election. This book surveys the empirical and major theoretical approaches, such as vote maximization, partisan and vote-cum-partisan models, and rational political business cycles. It provides extensions including the role of the central bank, of direct democracy, and the cycles in European communist countries, as well as discussing policy relevance.

Advances in Longitudinal Data Methods in Applied Economic Research
Advances in Longitudinal Data Methods in Applied Economic Research

Author: Nicholas Tsounis

Publisher: Springer Nature

Published: 2021-03-31

Total Pages: 545

ISBN-13: 3030639703

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This volume presents new methods and applications in longitudinal data estimation methodology in applied economic. Featuring selected papers from the 2020 the International Conference on Applied Economics (ICOAE 2020) held virtually due to the corona virus pandemic, this book examines interdisciplinary topics such as financial economics, international economics, agricultural economics, marketing and management. Country specific case studies are also featured.

Political Cycles and the Macroeconomy
Political Cycles and the Macroeconomy

Author: Alberto Alesina

Publisher: MIT Press

Published: 1997

Total Pages: 322

ISBN-13: 9780262510943

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This book examines how electoral laws, the timing of election, the ideological orientation of governments, and the nature of competition between political parties influence unemployment, economic growth, inflation, and monetary and fiscal policy. The book presents both a thorough overview of the theoretical literature and a vast amount of empirical evidence.

Election Timing
Election Timing

Author: Alastair Smith

Publisher: Cambridge University Press

Published: 2004-07-19

Total Pages: 298

ISBN-13: 9780521833639

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Endogenous election timing allows leaders to schedule elections 'when the time is right'. The author proposes and tests an informational theory of endogenous election timing that explains when leaders call for elections and the consequences of their decisions. In particular, he argues that, if all else is equal, leaders announce elections when they anticipate a decline in their future performance. As a consequence, early elections signal a leader's lack of confidence in future outcomes. The earlier elections occur, relative to expectations, the stronger the signal of demise. Using data on British parliaments since 1945, the author tests hypotheses related to timing of elections, electoral support and subsequent economic performance. Leaders who call elections early (relative to expectations) experience a decline in their popular support relative to pre-announcement levels, experience worse post-electoral performance, and have shorter campaigns.

Guidelines for Public Expenditure Management
Guidelines for Public Expenditure Management

Author: Mr.Jack Diamond

Publisher: International Monetary Fund

Published: 1999-07-01

Total Pages: 84

ISBN-13: 9781557757876

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Traditionally, economics training in public finances has focused more on tax than public expenditure issues, and within expenditure, more on policy considerations than the more mundane matters of public expenditure management. For many years, the IMF's Public Expenditure Management Division has answered specific questions raised by fiscal economists on such missions. Based on this experience, these guidelines arose from the need to provide a general overview of the principles and practices observed in three key aspects of public expenditure management: budget preparation, budget execution, and cash planning. For each aspect of public expenditure management, the guidelines identify separately the differing practices in four groups of countries - the francophone systems, the Commonwealth systems, Latin America, and those in the transition economies. Edited by Barry H. Potter and Jack Diamond, this publication is intended for a general fiscal, or a general budget, advisor interested in the macroeconomic dimension of public expenditure management.

Open Budgets
Open Budgets

Author: Sanjeev Khagram

Publisher: Brookings Institution Press

Published: 2013

Total Pages: 272

ISBN-13: 0815723377

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Explicates political economy factors that have brought about greater transparency and participation in budget settings across Asia, Africa, and Latin America. This title presents the strategies, policies, and institutions through which improvements can occur and produce change in policy and institutional outcomes.