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‘Leaning Against an Open Door’: Ideology and the cyclicality of public expenditure

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  • Abbott, Andrew
  • Jones, Philip

Abstract

When is government expenditure likely to be procyclical? While economists tend to anticipate counter-cyclical expenditure, recent studies report procyclical expenditure. This paper explores the impact of political ideology on the cyclicality of government expenditure. Predictions are tested with reference to government expenditure in the USA between 1950 and 2008. The likelihood of procyclical expenditure increases if groups that press for increased public expenditure are‘…leaning against an open door’.

Suggested Citation

  • Abbott, Andrew & Jones, Philip, 2014. "‘Leaning Against an Open Door’: Ideology and the cyclicality of public expenditure," Journal of Policy Modeling, Elsevier, vol. 36(6), pages 957-969.
    • Handle: RePEc:eee:jpolmo:v:36:y:2014:i:6:p:957-969
    DOI: 10.1016/j.jpolmod.2014.09.003
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    More about this item

    Keywords

    Business cycles; Fiscal policy; Voracity effects; Political ideology;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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