Dynamic Commitment and the Soft Budget Constraint: An Empirical Test
Author
Abstract
Suggested Citation
Note: DOI: 10.1257/pol.2.3.154
Download full text from publisher
References listed on IDEAS
- Cumby, Robert E. & Huizinga, John & Obstfeld, Maurice, 1983.
"Two-step two-stage least squares estimation in models with rational expectations,"
Journal of Econometrics, Elsevier, vol. 21(3), pages 333-355, April.
- Maurice Obstfeld & Robert E. Cumby & John Huizinga, 1983. "Two-Step Two-Stage Least Squares Estimation in Models with Rational Expectations," NBER Technical Working Papers 0011, National Bureau of Economic Research, Inc.
- Besley, Timothy & Case, Anne, 1995.
"Incumbent Behavior: Vote-Seeking, Tax-Setting, and Yardstick Competition,"
American Economic Review, American Economic Association, vol. 85(1), pages 25-45, March.
- Timothy Besley & Anne Case, 1992. "Incumbent Behavior: Vote Seeking, Tax Setting and Yardstick Competition," NBER Working Papers 4041, National Bureau of Economic Research, Inc.
- Timothy Besley & Anne Case, 2003.
"Political Institutions and Policy Choices: Evidence from the United States,"
Journal of Economic Literature, American Economic Association, vol. 41(1), pages 7-73, March.
- Besley, Tim & Case, Anne, 2002. "Political Institutions and Policy Choices: Evidence from the United States," CEPR Discussion Papers 3498, C.E.P.R. Discussion Papers.
- Tim Besley, 2002. "Political institutions and policy choices: evidence from the United States," IFS Working Papers W02/13, Institute for Fiscal Studies.
- Adrian Pagan, 1986.
"Two Stage and Related Estimators and Their Applications,"
The Review of Economic Studies, Review of Economic Studies Ltd, vol. 53(4), pages 517-538.
- Adrian Pagan, 1985. "Two Stage and Related Estimators and Their Applications," Cowles Foundation Discussion Papers 741, Cowles Foundation for Research in Economics, Yale University.
- Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005.
"Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools,"
Journal of Political Economy, University of Chicago Press, vol. 113(1), pages 151-184, February.
- Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2000. "Selection on Observed and Unobserved Variables: Assessing the Effectiveness of Catholic Schools," NBER Working Papers 7831, National Bureau of Economic Research, Inc.
- Assar Lindbeck & Jörgen Weibull, 1987. "Balanced-budget redistribution as the outcome of political competition," Public Choice, Springer, vol. 52(3), pages 273-297, January.
- Simeon Djankov & Peter Murrell, 2002.
"Enterprise Restructuring in Transition: A Quantitative Survey,"
Journal of Economic Literature, American Economic Association, vol. 40(3), pages 739-792, September.
- Djankov, Simeon & Murrell, Peter, 2002. "Enterprise Restructuring in Transition: A Quantitative Survey," CEPR Discussion Papers 3319, C.E.P.R. Discussion Papers.
- McCallum, Bennett T, 1976. "Rational Expectations and the Natural Rate Hypothesis: Some Consistent Estimates," Econometrica, Econometric Society, vol. 44(1), pages 43-52, January.
- Angrist, Joshua D. & Krueger, Alan B., 1999.
"Empirical strategies in labor economics,"
Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 23, pages 1277-1366,
Elsevier.
- Alan B. Krueger & Joshua D. Angrist, 1998. "Empirical Strategies in Labor Economics," Working Papers 780, Princeton University, Department of Economics, Industrial Relations Section..
- Joshua Angrist & Alan Krueger, 1998. "Empirical Strategies in Labor Economics," Working papers 98-7, Massachusetts Institute of Technology (MIT), Department of Economics.
- Avinash Dixit & John Londregan, 1998.
"Ideology, Tactics, and Efficiency in Redistributive Politics,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 113(2), pages 497-529.
- Avinash Dixit & John Londregan, 1997. "Ideology, Tactics, and Efficiency in Redistributive Politics," CESifo Working Paper Series 137, CESifo.
- Lindbeck, Assar & Weibull, Jorgen W., 1993. "A model of political equilibrium in a representative democracy," Journal of Public Economics, Elsevier, vol. 51(2), pages 195-209, June.
- Joseph G. Altonji & Todd E. Elder & Christopher R. Taber, 2005. "An Evaluation of Instrumental Variable Strategies for Estimating the Effects of Catholic Schooling," Journal of Human Resources, University of Wisconsin Press, vol. 40(4), pages 791-821.
- Murphy, Kevin M & Topel, Robert H, 2002.
"Estimation and Inference in Two-Step Econometric Models,"
Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
- Murphy, Kevin M & Topel, Robert H, 1985. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 3(4), pages 370-379, October.
- Dahlberg, Matz & Johansson, Eva, 2002.
"On the Vote-Purchasing Behavior of Incumbent Governments,"
American Political Science Review, Cambridge University Press, vol. 96(1), pages 27-40, March.
- Dahlberg, M. & Johansson, E., 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Papers 1999:24, Uppsala - Working Paper Series.
- Dahlberg, Matz & Johansson, Eva, 1999. "On the Vote Purchasing Behavior of Incumbent Governments," Working Paper Series 1999:24, Uppsala University, Department of Economics.
- Per Pettersson-Lidbom, 2001. "An Empirical Investigation of the Strategic Use of Debt," Journal of Political Economy, University of Chicago Press, vol. 109(3), pages 570-583, June.
- Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-1426, November.
- McCallum, Bennett T, 1976. "Rational Expectations and the Estimation of Econometric Models: AnAlternative Procedure," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 17(2), pages 484-490, June.
- Marcelo J. Moreira, 2003. "A Conditional Likelihood Ratio Test for Structural Models," Econometrica, Econometric Society, vol. 71(4), pages 1027-1048, July.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2004.
"How Much Should We Trust Differences-In-Differences Estimates?,"
The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(1), pages 249-275.
- Marianne Bertrand & Esther Duflo & Sendhil Mullainathan, 2002. "How Much Should We Trust Differences-in-Differences Estimates?," NBER Working Papers 8841, National Bureau of Economic Research, Inc.
- Abadie, Alberto, 2003. "Semiparametric instrumental variable estimation of treatment response models," Journal of Econometrics, Elsevier, vol. 113(2), pages 231-263, April.
- repec:bla:etrans:v:9:y:2001:i:1:p:1-27 is not listed on IDEAS
- Jonathan A. Rodden & Gunnar S. Eskeland (ed.), 2003. "Fiscal Decentralization and the Challenge of Hard Budget Constraints," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262182297, December.
- Pagan, Adrian, 1984. "Econometric Issues in the Analysis of Regressions with Generated Regressors," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 25(1), pages 221-247, February.
- Xu, Cheng-Gang & Maskin, Eric, 2001. "Soft Budget Constraint Theories: From Centralization to the Market," CEPR Discussion Papers 2715, C.E.P.R. Discussion Papers.
- Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
- Per Pettersson-Lidbom, 2008. "Do Parties Matter for Economic Outcomes? A Regression-Discontinuity Approach," Journal of the European Economic Association, MIT Press, vol. 6(5), pages 1037-1056, September.
- Jan K. Brueckner, 2003. "Strategic Interaction Among Governments: An Overview of Empirical Studies," International Regional Science Review, , vol. 26(2), pages 175-188, April.
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.- Pettersson-Lidbom, Per & Dahlberg, Matz, 2003. "An Empirical Approach for Evaluating Soft Budget Constraints," Working Paper Series 2003:28, Uppsala University, Department of Economics.
- Markus Reischmann, 2016. "Empirical Studies on Public Debt and Fiscal Transfers," ifo Beiträge zur Wirtschaftsforschung, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 63.
- Chirinko, Robert S. & Wilson, Daniel J., 2017.
"Tax competition among U.S. states: Racing to the bottom or riding on a seesaw?,"
Journal of Public Economics, Elsevier, vol. 155(C), pages 147-163.
- Robert S. Chirinko & Daniel J. Wilson, 2007. "Tax competition among U.S. states: racing to the bottom or riding on a seesaw?," Working Paper Series 2008-03, Federal Reserve Bank of San Francisco.
- Robert S. Chirinko & Daniel J. Wilson, 2017. "Tax competition among U.S. States: racing to the bottom or riding on a seesaw?," Working Papers 3, Department of the Treasury, Ministry of the Economy and of Finance.
- Robert S. Chirinko & Daniel J. Wilson, 2011. "Tax Competition Among U.S. States: Racing to the Bottom or Riding on a Seesaw?," CESifo Working Paper Series 3535, CESifo.
- Svaleryd, Helena & Vlachos, Jonas, 2009.
"Political rents in a non-corrupt democracy,"
Journal of Public Economics, Elsevier, vol. 93(3-4), pages 355-372, April.
- Svaleryd, Helena & Vlachos, Jonas, 2007. "Political Rents in a Non-Corrupt Democracy," Working Paper Series 698, Research Institute of Industrial Economics, revised 25 Sep 2008.
- Jan Fałkowski & Alessandro Olper, 2014.
"Political competition and policy choices: the evidence from agricultural protection,"
Agricultural Economics, International Association of Agricultural Economists, vol. 45(2), pages 143-158, March.
- Jan Fałkowski & Alessandro Olper, 2012. "Political Competition and Policy Choices: The Evidence From Agricultural Protection," Working Papers 2012-18, Faculty of Economic Sciences, University of Warsaw.
- Alexander Stoecker, 2021. "Partisan Alignment and Political Corruption: Evidence from a New Democracy," Volkswirtschaftliche Diskussionsbeiträge 192-21, Universität Siegen, Fakultät Wirtschaftswissenschaften, Wirtschaftsinformatik und Wirtschaftsrecht.
- Stoecker, Alexander, 2022. "Partisan alignment and political corruption: Evidence from a new democracy," World Development, Elsevier, vol. 152(C).
- Albert Solé-Ollé, 2013.
"Inter-regional redistribution through infrastructure investment: tactical or programmatic?,"
Public Choice,
Springer, vol. 156(1), pages 229-252, July.
- Albert Solé-Ollé, 2009. "Inter-regional redistribution through infrastructure investment: tactical or programmatic?," Working Papers XREAP2009-13, Xarxa de Referència en Economia Aplicada (XREAP), revised Nov 2009.
- Albert Solé-Ollé, 2009. "Inter-Regional redistribution through infrastructure investment: tactical or programmatic?," Working Papers 2009/32, Institut d'Economia de Barcelona (IEB).
- Foremny, Dirk & Riedel, Nadine, 2014.
"Business taxes and the electoral cycle,"
Journal of Public Economics, Elsevier, vol. 115(C), pages 48-61.
- Dirk Foremny & Nadine Riedel, 2012. "Business taxes and the electoral cycle," Working Papers 2012/3, Institut d'Economia de Barcelona (IEB).
- Foremny, Dirk & Riedel, Nadine, 2012. "Business taxes and the electoral cycle," FZID Discussion Papers 43-2012, University of Hohenheim, Center for Research on Innovation and Services (FZID).
- Dirk Foremny & Nadine Riedel, 2012. "Business Taxes and the Electoral Cycle," CESifo Working Paper Series 3729, CESifo.
- Edmark, Karin & Ågren, Hanna, 2008.
"Identifying strategic interactions in Swedish local income tax policies,"
Journal of Urban Economics, Elsevier, vol. 63(3), pages 849-857, May.
- Edmark, Karin & Ågren, Hanna, 2006. "Identifying Strategic Interactions in Swedish Local Income Tax Policies," Working Paper Series 2006:22, Uppsala University, Department of Economics.
- Linda Veiga, 2012.
"Determinants of the assignment of EU funds to Portuguese municipalities,"
Public Choice, Springer, vol. 153(1), pages 215-233, October.
- Linda Gonçalves Veiga, 2010. "Determinants of the assignment of E.U. funds to Portuguese municipalities," NIPE Working Papers 11/2010, NIPE - Universidade do Minho.
- Albert Solé-Ollé, 2009. "Inter-Regional redistribution through infrastructure investment: tactical or programmatic?," Working Papers 2009/32, Institut d'Economia de Barcelona (IEB).
- Jon Fiva & Gisle Natvik, 2013.
"Do re-election probabilities influence public investment?,"
Public Choice, Springer, vol. 157(1), pages 305-331, October.
- Jon H. Fiva & Gisle James Natvik, 2009. "Do re-election probabilities influence public investment?," Working Paper 2009/13, Norges Bank.
- Jon Fiva & Gisle James Natvik, 2010. "Do re-election probabilities influence public investment?," 2010 Meeting Papers 334, Society for Economic Dynamics.
- Fiva, Jon H. & Natvik, Gisle James, 2009. "Do Re-election Probabilities Influence Public Investment?," Memorandum 16/2009, Oslo University, Department of Economics.
- Jon H. Fiva & Gisle James Natvik, 2009. "Do re-election probabilities influence public investment?," Working Papers 2009/36, Institut d'Economia de Barcelona (IEB).
- Jon H. Fiva & Gisle James Natvik, 2009. "Do Re-election Probabilities Influence Public Investment?," CESifo Working Paper Series 2709, CESifo.
- Pierri, Nicola & Timmer, Yannick, 2022.
"The importance of technology in banking during a crisis,"
Journal of Monetary Economics, Elsevier, vol. 128(C), pages 88-104.
- Timmer, Yannick & Pierri, Niccola, 2021. "The importance of technology in banking during a crisis," ESRB Working Paper Series 117, European Systemic Risk Board.
- Nicola Pierri & Yannick Timmer, 2022. "The Importance of Technology in Banking during a Crisis," Finance and Economics Discussion Series 2022-020, Board of Governors of the Federal Reserve System (U.S.).
- Dietrichson, Jens & Ellegård, Lina Maria, 2015.
"Assist or desist? Conditional bailouts and fiscal discipline in local governments,"
European Journal of Political Economy, Elsevier, vol. 38(C), pages 153-168.
- Dietrichson, Jens & Ellegård, Lina Maria, 2012. "Assist or Desist? Conditional Bailouts and Fiscal Discipline in Local Governments," Working Papers 2012:24, Lund University, Department of Economics, revised 12 Feb 2015.
- Jens Dietrichson & Lina Maria Ellegård, 2013. "Assist or desist? Conditional bailouts and fiscal discipline in local governments," ERSA conference papers ersa13p598, European Regional Science Association.
- Elinder, Mikael & Jordahl, Henrik & Poutvaara, Panu, 2015. "Promises, policies and pocketbook voting," European Economic Review, Elsevier, vol. 75(C), pages 177-194.
- Alejandro Esteller & Albert Solé, 2005. "Does decentralization improve the efficiency in the allocation of public investment? Evidence from Spain," Working Papers 2005/5, Institut d'Economia de Barcelona (IEB).
- Kauder, Björn & Potrafke, Niklas & Reischmann, Markus, 2016.
"Do politicians reward core supporters? Evidence from a discretionary grant program,"
European Journal of Political Economy, Elsevier, vol. 45(C), pages 39-56.
- Björn Kauder & Niklas Potrafke & Markus Reischmann, 2016. "Do Politicians Reward Core Supporters? Evidence from a Discretionary Grant Program," CESifo Working Paper Series 6097, CESifo.
- Westberg, Nina Bruvik, 2015. "Exchanging fertilizer for votes?," Working Paper Series 12-2015, Norwegian University of Life Sciences, School of Economics and Business.
- Kauder, Björn & Björn, Kauder & Niklas, Potrafke & Markus, Reischmann, 2016. "Do politicians gratify core supporters? Evidence from a discretionary grant program," VfS Annual Conference 2016 (Augsburg): Demographic Change 145509, Verein für Socialpolitik / German Economic Association.
More about this item
JEL classification:
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises
Lists
This item is featured on the following reading lists, Wikipedia, or ReplicationWiki pages:- Dynamic Commitment and the Soft Budget Constraint: An Empirical Test (American Economic Journal: Economic Policy 2010) in ReplicationWiki
Statistics
Access and download statisticsCorrections
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:aea:aejpol:v:2:y:2010:i:3:p:154-79. 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: Michael P. Albert (email available below). General contact details of provider: https://edirc.repec.org/data/aeaaaea.html .
Please note that corrections may take a couple of weeks to filter through the various RePEc services.