IDEAS home Printed from https://ideas.repec.org/a/aoq/ekonom/y2025i1p52-81.html
   My bibliography  Save this article

Current Expenditure Over the Term of Office: The Case of Polish Municipalities

Author

Listed:
  • Monika Banaszewska

Abstract

This article sets out to examine fluctuations in municipal current expenditure over the course of the term of office. An empirical study was conducted on a sample of 2,479 Polish municipalities over the period 2008–2022. In addition to total current expenditure, the analysis also looked at its components, including current expenditure on salaries and allowances, grants for current tasks, benefits for natural persons, and current expenditure on the purchase of materials and services. To account for unobserved heterogeneity and the impact of the business cycle, panel models with fixed effects for municipalities and electoral terms were employed. The results indicate that the political budget cycle affects total current expenditure and is influenced by current expenditure on salaries and allowances, as well as grants for current tasks. In addition, the magnitude of the decrease in total current expenditure in the post-election year is found to be more pronounced in municipalities with a newly elected mayor, compared to municipalities where the incumbent mayor was re-elected.

Suggested Citation

  • Monika Banaszewska, 2025. "Current Expenditure Over the Term of Office: The Case of Polish Municipalities," Ekonomista, Polskie Towarzystwo Ekonomiczne, issue 1, pages 52-81.
  • Handle: RePEc:aoq:ekonom:y:2025:i:1:p:52-81
    as

    Download full text from publisher

    File URL: https://ekonomista.pte.pl/pdf-196211-117392
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    local government; political budget cycle; electoral opportunism;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures

    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:aoq:ekonom:y:2025:i:1:p:52-81. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tomasz Kwarcinski (email available below). General contact details of provider: https://edirc.repec.org/data/pteeeea.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.