Political business cycles in public goods expenditures in Poland and Spain

• Autor(a) principal: Wacławska, Kamila Angelika
• Data de Publicação: 2015
• Tipo de documento: Dissertação
• Idioma: eng
• Título da fonte: Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)
• Texto Completo: http://hdl.handle.net/10071/11086
• topic: Public spending; Political business cycles; Fiscal decentralization; Fiscal autonomy; Gastos públicos; Ciclos políticos; Descentralização fiscal; Autonomia fiscal

In this work the discussion is focused on the empirical test of the presence of opportunistic cycles in municipal budgets of Poland and Spain. In the view of progressive decentralization of public sector, the research is extended by the examination of fiscal autonomy effect. Panel data analysis provides an evidence on electoral cycles in the categories of spending considered in the literature as invisible to the electorate. In particular, local incumbents seeking re-election signal higher competence through manipulation of spending policies associated with social support, environmental protection, public safety and administration. Further research indicates that electoral cycles in Spain are intensified by limited authority of councillors determined by transfers from the central government. The main findings suggest that distribution of fiscal power to sub-national governments may mitigate the effects of political budget cycles.