VC_RM_cofog.pdf (1.12 MB)
Politically driven cycles in fiscal policy: In depth analysis of the functional components of government expenditures
journal contribution
posted on 2017-11-17, 11:22 authored by Vitor CastroVitor Castro, Rodrigo MartinsThis article analyses the incidence of politically driven cycles on the functional components and sub-components of government expenditures over a group of 18 European countries during the period 1990-2012. An LSDVC estimator is employed in the empirical analysis. The results provide evidence of political opportunism at aggregated and disaggregated levels of public expenditures. The expenditure components that have proved to be more related to that behaviour are public services, education, social protection and some sub-components of health expenditure, items that tend to generate outcomes that are more visible to voters. Some disaggregated evidence of partisan manipulation is also found.
Funding
Vitor Castro also wishes to thank the financial support provided by the Portuguese Foundation for Science and Technology under the research grant SFRH/BSAB/113588/2015 (partially funded by COMPTE, QREN and FEDER).
History
School
- Business and Economics
Department
- Economics
Published in
European Journal of Political EconomyCitation
CASTRO, V. and MARTINS, R., 2018. Politically driven cycles in fiscal policy: In depth analysis of the functional components of government expenditures. European Journal of Political Economy, 55, pp. 44-64.Publisher
© ElsevierVersion
- AM (Accepted Manuscript)
Publisher statement
This paper was accepted for publication in the journal European Journal of Political Economy and the definitive published version is available at https://doi.org/10.1016/j.ejpoleco.2017.11.003.Acceptance date
2017-11-05Publication date
2017-11-09ISSN
0176-2680Publisher version
Language
- en