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Political Expenditure Cycles and Election Outcomes Evidence from Disaggregation of Public Expenditures by Economic Functions

Author

Listed:
  • Soeren Enkelmann

    (Department of Economics, Leuphana University Lueneburg, Germany)

  • Markus Leibrecht

    (Austrian Institute of Economic Research)

Abstract
Through disaggregating public expenditures by economic functions this paper offers a new perspective on the existence and effectiveness of electorally motivated expenditure policy. The aim of the paper is to provide more detailed information on the specific expenditure categories by which politicians try to affect election results. Based on COFOG data for 32 OECD and Eastern European countries over the years 1990-2010, it is shown that political expenditure cycles in total expenditures as well as in specific expenditure categories mainly exist in newly democratized Eastern European countries. However, the paper also provides evidence that these electorally motivated spending policies are ineffective means to enhance the reelection probability.

Suggested Citation

  • Soeren Enkelmann & Markus Leibrecht, 2013. "Political Expenditure Cycles and Election Outcomes Evidence from Disaggregation of Public Expenditures by Economic Functions," Working Paper Series in Economics 275, University of Lüneburg, Institute of Economics.
    • Handle: RePEc:lue:wpaper:275
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    References listed on IDEAS

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    More about this item

    Keywords

    political expenditure cycle; political economy; re-election probability; COFOG;
    All these keywords.

    JEL classification:

    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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