[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/zbw/bamber/77.html
   My bibliography  Save this paper

Political cycles in income from privatization: The case of Albania

Author

Listed:
  • Imami, Drini
  • Lami, Endrit
  • Kächelein, Holger
Abstract
The phenomenon of manipulation of the economy by the incumbent for electoral purpose is called Political Business Cycles (PBC). Using policy control economic instruments, such as fiscal and monetary instruments, governments may manipulate the economy to gain electoral advantage by producing growth and decreasing unemployment before elections. Earlier research on PBC in Albania found clear evidence of fiscal expansion before elections. In addition to increased income from taxes and borrowing, another source of financing the increased fiscal expansion in transition countries may be income from privatization, which is also the object of the analysis of this paper. In our analysis we apply standard econometric approach, used widely for research related to PBC. We test if income from privatization increases before elections. We find statistically significant increase of income from privatization before general (parliamentary) elections, which may lead us to conclude that one of the reasons may be to finance increased expenditures before elections. Another motivation, behind this behavior of the incumbent, may be rent - seeking. These results are of particular interest, as it is for the first time that income from privatization is analyzed in conjunction with PBC.

Suggested Citation

  • Imami, Drini & Lami, Endrit & Kächelein, Holger, 2011. "Political cycles in income from privatization: The case of Albania," BERG Working Paper Series 77, Bamberg University, Bamberg Economic Research Group.
    • Handle: RePEc:zbw:bamber:77
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/45553/1/658136259.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Pfeffer, Annamaria, 2010. "Staatliche Zinssubvention und Auslandsverschuldung: Eine Mittelwert-Varianz-Analyse am Beispiel Ungarn," BERG Working Paper Series 72, Bamberg University, Bamberg Economic Research Group.
    2. Bexheti, Abdulmenaf, 2010. "Anti-crisis measures in the republic of Macedonia and their effects: Are they sufficient?," BERG Working Paper Series 70, Bamberg University, Bamberg Economic Research Group.
    3. Shi, Min & Svensson, Jakob, 2006. "Political budget cycles: Do they differ across countries and why?," Journal of Public Economics, Elsevier, vol. 90(8-9), pages 1367-1389, September.
    4. Wrede, Matthias, 1999. "A note on reliefs for traveling expenses to work," BERG Working Paper Series 30, Bamberg University, Bamberg Economic Research Group.
    5. Witte, Björn-Christopher, 2009. "Temporal information gaps and market efficiency: A dynamic behavioral analysis," BERG Working Paper Series 64, Bamberg University, Bamberg Economic Research Group.
    6. Wenzel, Heinz-Dieter (Ed.), 2007. "Der Kaspische Raum: Ausgewählte Themen zu Politik und Wirtschaft," BERG Working Paper Series 57, Bamberg University, Bamberg Economic Research Group.
    7. Kurt A. Hafner, 2015. "Tax Competition and Economic Integration," Review of Development Economics, Wiley Blackwell, vol. 19(1), pages 45-61, February.
    8. Malaj, Arben & Mema, Fatmir & Hida, Sybi, 2005. "Albania, financial management in the education system: Higher education," BERG Working Paper Series 54, Bamberg University, Bamberg Economic Research Group.
    9. Lackenbauer, Jörg & Wenzel, Heinz-Dieter, 2001. "Zum Stand von Transformations- und EU-Beitrittsprozess in Mittel- und Osteuropa: Eine komparative Analyse," BERG Working Paper Series 37, Bamberg University, Bamberg Economic Research Group.
    10. Bernd Hayo & Matthias Wrede, 2004. "Fiscal equalisation: Principles and an application to the European Union," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 23(3), pages 333-348, December.
    11. Nusser, Michael, 1999. "The implications of wage structure rigidity on human capital accumulation, economic growth and unemployment: A Schumpeterian approach to endogenous growth theory," BERG Working Paper Series 28, Bamberg University, Bamberg Economic Research Group.
    12. Wrede, Matthias, 1998. "Pareto efficiency of the pay-as-you-go pension system in a three-period-OLG model," BERG Working Paper Series 27, Bamberg University, Bamberg Economic Research Group.
    13. Kalusche, Johannes, 2010. "Die Auswirkungen der Steuer- und Sozialreformen der Jahre 1999 - 2005 auf die automatischen Stabilisatoren Deutschlands," BERG Working Paper Series 76, Bamberg University, Bamberg Economic Research Group.
    14. Kola, Tonin & Liko, Elida, 2008. "An empirical assessment of alternative exchange rate regimes in medium term in Albania," BERG Working Paper Series 58, Bamberg University, Bamberg Economic Research Group.
    15. Gervai, Pál & Trautmann, László & Wieszt, Attila, 2010. "The mission and culture of the corporation," BERG Working Paper Series 74, Bamberg University, Bamberg Economic Research Group.
    16. Roberto Dieci & Frank Westerhoff, 2012. "A simple model of a speculative housing market," Journal of Evolutionary Economics, Springer, vol. 22(2), pages 303-329, April.
    17. Lines Marji & Westerhoff Frank, 2012. "Effects of Inflation Expectations on Macroeconomic Dynamics: Extrapolative Versus Regressive Expectations," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(4), pages 1-30, October.
    18. Jenei, György, 2009. "A post-accession crisis? Political developments and public sector modernization in Hungary," BERG Working Paper Series 67, Bamberg University, Bamberg Economic Research Group.
    19. Malaj, Arben & Mema, Fatmir, 2003. "Strategic privatisation: Its achievements and challenges," BERG Working Paper Series 41, Bamberg University, Bamberg Economic Research Group.
    20. Kremer, Jana, 1999. "Arbeitslosigkeit und Steuerpolitik," BERG Working Paper Series 32, Bamberg University, Bamberg Economic Research Group.
    21. Nusser, Michael, 1998. "The implications of innovations and wage structure rigidity on economic growth and unemployment: A Schumpeterian approach to endogenous growth theory," BERG Working Paper Series 26, Bamberg University, Bamberg Economic Research Group.
    22. Treier, Volker, 1999. "Unemployment in reforming countries: Causes, fiscal impacts and the success of transformation," BERG Working Paper Series 29, Bamberg University, Bamberg Economic Research Group.
    23. Azzam, Osmat & Dhamo, Sotiraq & Kola, Tonin, 2005. "Introducing National Health Accounts in Albania," BERG Working Paper Series 55, Bamberg University, Bamberg Economic Research Group.
    24. Alfarano Simone & Milakovic Mishael, 2012. "Identification of Interaction Effects in Survey Expectations: A Cautionary Note," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(4), pages 1-23, October.
    25. Szüle, Borbála, 2003. "Inside financial conglomerates: Effects in the Hungarian pension fund markets," BERG Working Paper Series 42, Bamberg University, Bamberg Economic Research Group.
    26. Westerhoff, Frank, 2009. "A simple agent-based financial market model: Direct interactions and comparisons of trading profits," BERG Working Paper Series 61, Bamberg University, Bamberg Economic Research Group.
    27. Bogdani, Irena Dh., 2002. "Public expenditure planning in Albania," BERG Working Paper Series 39, Bamberg University, Bamberg Economic Research Group.
    28. Stübben, Felix & Lackenbauer, Jörg & Wenzel, Heinz-Dieter, 2005. "Eine Dekade wirtschaftlicher Transformation in den Westbalkanstaaten: Ein Überblick," BERG Working Paper Series 53, Bamberg University, Bamberg Economic Research Group.
    29. Haensgen, Tineke, 2002. "Das Kyoto Protokoll: Eine ökonomische Analyse unter besonderer Berücksichtigung der flexiblen Mechanismen," BERG Working Paper Series 40, Bamberg University, Bamberg Economic Research Group.
    30. Carsten Eckel, 2009. "International Trade and Retailing," CESifo Working Paper Series 2597, CESifo.
    31. Kächelein, Holger, 2004. "Capital Tax Competition and Partial Cooperation : Welfare Enhancing or not?," BERG Working Paper Series 51, Bamberg University, Bamberg Economic Research Group.
    32. Wrede, Matthias, 1999. "Mobility and reliefs for traveling expenses to work," BERG Working Paper Series 33, Bamberg University, Bamberg Economic Research Group.
    33. Thiel, Elke, 2004. "European Integration of Albania : Economic Aspects," BERG Working Paper Series 49, Bamberg University, Bamberg Economic Research Group.
    34. Gaber, Stevan, 2010. "Economic implications from deficit finance," BERG Working Paper Series 69, Bamberg University, Bamberg Economic Research Group.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Seregi, János & Lelovics, Zsuzsanna & Balogh, László, 2012. "The social welfare function of forests in the light of the theory of public goods," BERG Working Paper Series 87, Bamberg University, Bamberg Economic Research Group.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Franke, Reiner & Westerhoff, Frank, 2011. "Why a simple herding model may generate the stylized facts of daily returns: Explanation and estimation," BERG Working Paper Series 83, Bamberg University, Bamberg Economic Research Group.
    2. Franke, Reiner & Westerhoff, Frank, 2012. "Structural stochastic volatility in asset pricing dynamics: Estimation and model contest," Journal of Economic Dynamics and Control, Elsevier, vol. 36(8), pages 1193-1211.
    3. Seregi, János & Lelovics, Zsuzsanna & Balogh, László, 2012. "The social welfare function of forests in the light of the theory of public goods," BERG Working Paper Series 87, Bamberg University, Bamberg Economic Research Group.
    4. Alfarano Simone & Milakovic Mishael, 2012. "Identification of Interaction Effects in Survey Expectations: A Cautionary Note," Studies in Nonlinear Dynamics & Econometrics, De Gruyter, vol. 16(4), pages 1-23, October.
    5. Fatoke Dato, Mafaizath A., 2015. "Impact of income shock on children’s schooling and labor in a West African country," MPRA Paper 64317, University Library of Munich, Germany.
    6. Dräger, Lena & Proaño, Christian R., 2015. "Cross-border banking and business cycles in asymmetric currency unions," Discussion Papers 21/2015, Deutsche Bundesbank.
    7. Meyer, Dietmar & Shera, Adela, 2015. "Remittances' impact on the labor supply and on the deficit of current account," BERG Working Paper Series 97, Bamberg University, Bamberg Economic Research Group.
    8. Schmitt, Noemi & Tuinstra, Jan & Westerhoff, Frank, 2017. "Side effects of nonlinear profit taxes in an evolutionary market entry model: Abrupt changes, coexisting attractors and hysteresis problems," Journal of Economic Behavior & Organization, Elsevier, vol. 135(C), pages 15-38.
    9. Schmitt, Noemi & Westerhoff, Frank, 2018. "Evolutionary Competition And Profit Taxes: Market Stability Versus Tax Burden," Macroeconomic Dynamics, Cambridge University Press, vol. 22(8), pages 2007-2031, December.
    10. Noemi Schmitt & Frank Westerhoff, 2017. "Herding behaviour and volatility clustering in financial markets," Quantitative Finance, Taylor & Francis Journals, vol. 17(8), pages 1187-1203, August.
    11. Fatoke-Dato, Mafaïzath A., 2015. "Impact of an educational demand-and-supply policy on girls' education in West Africa: Heterogeneity in income, school environment and ethnicity," BERG Working Paper Series 101, Bamberg University, Bamberg Economic Research Group.
    12. Gervai, Pál & Trautmann, László & Wieszt, Attila, 2010. "The mission and culture of the corporation," BERG Working Paper Series 74, Bamberg University, Bamberg Economic Research Group.
    13. Proaño, Christian R. & Lojak, Benjamin, 2015. "Debt stabilization and macroeconomic volatility in monetary unions under heterogeneous sovereign risk perceptions," BERG Working Paper Series 106, Bamberg University, Bamberg Economic Research Group.
    14. Bexheti, Abdylmenaf & Mustafi, Besime, 2015. "Impact of public funding of education on economic growth in Macedonia," BERG Working Paper Series 98, Bamberg University, Bamberg Economic Research Group.
    15. Bexheti, Abdulmenaf, 2010. "Anti-crisis measures in the republic of Macedonia and their effects: Are they sufficient?," BERG Working Paper Series 70, Bamberg University, Bamberg Economic Research Group.
    16. Carsten Eckel, 2009. "International Trade and Retailing," CESifo Working Paper Series 2597, CESifo.
    17. Kächelein, Holger & Imami, Drini & Lami, Endrit, 2008. "A new view into political business cycles: Household expenditures in Albania," BERG Working Paper Series 60, Bamberg University, Bamberg Economic Research Group.
    18. Kächelein, Holger, 2004. "Capital Tax Competition and Partial Cooperation : Welfare Enhancing or not?," BERG Working Paper Series 51, Bamberg University, Bamberg Economic Research Group.
    19. Kächelein, Holger, 2003. "Fiscal competition on the local level: May commuting be a source of fiscal crises?," BERG Working Paper Series 45, Bamberg University, Bamberg Economic Research Group.
    20. Hopp, Stefan, 2004. "J.-B. Say's 1803 Treatise and the Coordination of Economic Activity," BERG Working Paper Series 47, Bamberg University, Bamberg Economic Research Group.

    More about this item

    Keywords

    Albania; Political Business Cycle; Privatization;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O23 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Fiscal and Monetary Policy in Development
    • H61 - Public Economics - - National Budget, Deficit, and Debt - - - Budget; Budget Systems

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:bamber:77. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/bebamde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.