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Political cycles in public expenditure: butter vs guns

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  • Bove, Vincenzo
  • Efthyvoulou, Georgios
  • Navas, Antonio

Abstract

This paper explores, theoretically and empirically, how governments may use the tradeoff between social and military expenditure to advance their electoral and partisan objectives. Three key results emerge. First, governments tend to bias outlays towards social expenditure and away from military expenditure at election times. Second, the size of this tradeoff is larger when we exclude countries involved in conflict, where national security plays an important role on voter choice. Third, while certain categories of social expenditure are higher during left administrations, military expenditure is higher during right administrations.

Suggested Citation

  • Bove, Vincenzo & Efthyvoulou, Georgios & Navas, Antonio, 2017. "Political cycles in public expenditure: butter vs guns," Journal of Comparative Economics, Elsevier, vol. 45(3), pages 582-604.
    • Handle: RePEc:eee:jcecon:v:45:y:2017:i:3:p:582-604
    DOI: 10.1016/j.jce.2016.03.004
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    More about this item

    Keywords

    Elections; Partisanship; Social expenditure; Military expenditure;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State

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