Political budget cycles in the Eurozone
Autor(a) principal: | |
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Data de Publicação: | 2020 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.5/19985 |
Resumo: | This paper provides evidences of the electoral influence on fiscal policy in the Eurozone countries. Using data from EA19 in 1995-2017 and a time dummy to identify election years, it was applied a Fixed Effects model to assess its impact on fiscal instruments. According to the results, the elections seem to increase both compensations to employees and other current expenditure. In addition, the politically motivated policies seem to differ from low and highly indebted countries. Giving the electoral impact on the compensation to employees, the pro-cyclical tax strategy, and the absence of a Ricardian fiscal regime, its perceived less prudent policies from the most indebted countries. Furthermore, after countries joined the EMU, policy makers began to increase tax burden facing interest rate shocks, since they lose the ability to manipulate monetary policy. |
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Political budget cycles in the EurozonePolitical Budget CyclesFiscal policyElectionsEMUIV-GMMThis paper provides evidences of the electoral influence on fiscal policy in the Eurozone countries. Using data from EA19 in 1995-2017 and a time dummy to identify election years, it was applied a Fixed Effects model to assess its impact on fiscal instruments. According to the results, the elections seem to increase both compensations to employees and other current expenditure. In addition, the politically motivated policies seem to differ from low and highly indebted countries. Giving the electoral impact on the compensation to employees, the pro-cyclical tax strategy, and the absence of a Ricardian fiscal regime, its perceived less prudent policies from the most indebted countries. Furthermore, after countries joined the EMU, policy makers began to increase tax burden facing interest rate shocks, since they lose the ability to manipulate monetary policy.ISEG - REM - Research in Economics and MathematicsRepositório da Universidade de LisboaLeal, Frederico Silva2020-03-29T15:48:45Z2020-032020-03-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/19985engLeal, Frederico Silva (2020). "Political budget cycles in the Eurozone". Instituto Superior de Economia e Gestão – REM Working paper nº 0120 – 20202184-108Xinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-03-06T14:49:27Zoai:www.repository.utl.pt:10400.5/19985Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T17:04:48.869577Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Political budget cycles in the Eurozone |
title |
Political budget cycles in the Eurozone |
spellingShingle |
Political budget cycles in the Eurozone Leal, Frederico Silva Political Budget Cycles Fiscal policy Elections EMU IV-GMM |
title_short |
Political budget cycles in the Eurozone |
title_full |
Political budget cycles in the Eurozone |
title_fullStr |
Political budget cycles in the Eurozone |
title_full_unstemmed |
Political budget cycles in the Eurozone |
title_sort |
Political budget cycles in the Eurozone |
author |
Leal, Frederico Silva |
author_facet |
Leal, Frederico Silva |
author_role |
author |
dc.contributor.none.fl_str_mv |
Repositório da Universidade de Lisboa |
dc.contributor.author.fl_str_mv |
Leal, Frederico Silva |
dc.subject.por.fl_str_mv |
Political Budget Cycles Fiscal policy Elections EMU IV-GMM |
topic |
Political Budget Cycles Fiscal policy Elections EMU IV-GMM |
description |
This paper provides evidences of the electoral influence on fiscal policy in the Eurozone countries. Using data from EA19 in 1995-2017 and a time dummy to identify election years, it was applied a Fixed Effects model to assess its impact on fiscal instruments. According to the results, the elections seem to increase both compensations to employees and other current expenditure. In addition, the politically motivated policies seem to differ from low and highly indebted countries. Giving the electoral impact on the compensation to employees, the pro-cyclical tax strategy, and the absence of a Ricardian fiscal regime, its perceived less prudent policies from the most indebted countries. Furthermore, after countries joined the EMU, policy makers began to increase tax burden facing interest rate shocks, since they lose the ability to manipulate monetary policy. |
publishDate |
2020 |
dc.date.none.fl_str_mv |
2020-03-29T15:48:45Z 2020-03 2020-03-01T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.5/19985 |
url |
http://hdl.handle.net/10400.5/19985 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Leal, Frederico Silva (2020). "Political budget cycles in the Eurozone". Instituto Superior de Economia e Gestão – REM Working paper nº 0120 – 2020 2184-108X |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
publisher.none.fl_str_mv |
ISEG - REM - Research in Economics and Mathematics |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
instname_str |
Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
instacron_str |
RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
collection |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
repository.name.fl_str_mv |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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1799131140350541824 |