Political-Economic Cycles: an analysis of public expenditures of the State of Paraná between 2003-2013

• Autor(a) principal: Gionedis, Edgar Marcel
• Data de Publicação: 2016
• Outros Autores: Guimaraes, Raquel
• Tipo de documento: Artigo
• Idioma: por
• Título da fonte: Revista Paranaense de Desenvolvimento (Online)
• Texto Completo: https://ipardes.emnuvens.com.br/revistaparanaense/article/view/796
• topic: Political-economic cycles. Public expenditure. Panel data model.; Ciclos político-económicos. Gasto público. Modelo de datos de panel.; Ciclos político-econômicos. Gasto público. Modelo de dados em painel.

The relation between political processes and economic variables has been greatly explored in Economics. This relation occurs usually because government leaders have the power of decision on economic variables, for instance, while developing fiscal and monetary policies to stabilize or stimulate economic growth. The objective of this study is to contribute with the existing literature by analyzing the existence of political-economic cycles in the cities of the State of Paraná from 2003 to 2013. Based on theoretical studies, econometric tests were applied to verify the existence of political opportunism in the cities of Paraná. The econometric model used was of panel data with a fixed effect specification. The results prove that, in election years, the municipal public expenditure increases, while, in postelection years, such expenditure decreases. The conclusion of this paper is that there is an adjustment process of municipal expenditures with the electoral calendar, endorsing the hypothesis of the political-economic cycle.