IDEAS home Printed from https://ideas.repec.org/a/gam/jecomi/v10y2022i9p220-d910648.html
   My bibliography  Save this article

Do Regional Heads Utilize Capital Expenditures, Grants, and Social Assistance in the Context of Elections?

Author

Listed:
  • Chanif Rizqiyati

    (Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia)

  • Doddy Setiawan

    (Faculty of Economics and Business, Universitas Sebelas Maret, Surakarta 57126, Indonesia)

Abstract

This study empirically analyzes the alleged existence of political budget cycles in Indonesian local governments. Using panel data, this quantitative study concentrates on capital expenditures, grant expenditures, and social assistance expenditures in the election year and the year before the election. The purposive sampling method is used to take the sample—a local government that experienced two election cycles from 2012 to 2018. The sample consists of 1306 observational data points on capital expenditures and grants, and 636 observational data points on social assistance. The study tests its hypothesis using multiple regression analysis. The results indicate that the election year negatively affects capital expenditures, positively affects grants, and has no effect on social assistance. The year before the election negatively affects capital expenditures, but positively affects grants and social assistance. The incumbent positively affects social assistance but does not affect capital expenditures and grants. Transfers have a negative effect on capital expenditures, a positive effect on grants, and no effect on social assistance. The interactions of the election year and year before the election with the incumbent is not proven in this study.

Suggested Citation

  • Chanif Rizqiyati & Doddy Setiawan, 2022. "Do Regional Heads Utilize Capital Expenditures, Grants, and Social Assistance in the Context of Elections?," Economies, MDPI, vol. 10(9), pages 1-15, September.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:9:p:220-:d:910648
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2227-7099/10/9/220/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2227-7099/10/9/220/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Drazen, Allan & Eslava, Marcela, 2010. "Electoral manipulation via voter-friendly spending: Theory and evidence," Journal of Development Economics, Elsevier, vol. 92(1), pages 39-52, May.
    2. Monika Köppl Turyna & Grzegorz Kula & Agata Balmas & Kamila Waclawska, 2016. "The effects of fiscal decentralisation on the strength of political budget cycles in local expenditure," Local Government Studies, Taylor & Francis Journals, vol. 42(5), pages 785-820, September.
    3. Bracco, Emanuele, 2018. "A fine collection: The political budget cycle of traffic enforcement," Economics Letters, Elsevier, vol. 164(C), pages 117-120.
    Full references (including those not matched with items on IDEAS)

    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.
    1. Bernardino Benito & María-Dolores Guillamón & Ana-María Ríos, 2021. "Political Budget Cycles in Public Revenues: Evidence From Fines," SAGE Open, , vol. 11(4), pages 21582440211, November.
    2. Emanuele Bracco & Marco Alberto De Benedetto & Maurizio Lisciandra, 2024. "Manipulating municipal budgets: unveiling opportunistic behavior of Italian mayors," Public Choice, Springer, vol. 198(3), pages 317-342, March.
    3. Collazos-Ortiz, María Antonieta & Wong, Pui-Hang, 2024. "The effects of resource rents and elections on human capital investment in Colombia," Resources Policy, Elsevier, vol. 89(C).
    4. Lehmann, M. Christian & Matarazzo, Hellen, 2019. "Voters’ response to in-kind transfers: Quasi-experimental evidence from prescription drug cost-sharing in Brazil," Economics Letters, Elsevier, vol. 184(C).
    5. Douglas Sutherland & Peter Hoeller & Balázs Égert & Oliver Röhn, 2010. "Counter-cyclical Economic Policy," OECD Economics Department Working Papers 760, OECD Publishing.
    6. Peter Spáč, 2021. "Pork barrel politics and electoral returns at the local level," Public Choice, Springer, vol. 188(3), pages 479-501, September.
    7. Raffaella Santolini, 2017. "Electoral Rules And Public Spending Composition: The Case Of Italian Regions," Contemporary Economic Policy, Western Economic Association International, vol. 35(3), pages 551-577, July.
    8. Rodrigo Martins & Francisco Veiga, 2013. "Economic voting in Portuguese municipal elections," Public Choice, Springer, vol. 155(3), pages 317-334, June.
    9. Monika Köppl-Turyna, 2016. "Opportunistic politicians and fiscal outcomes: the curious case of Vorarlberg," Public Choice, Springer, vol. 168(3), pages 177-216, September.
    10. Vincenzo Bove & Leandro Elia & Massimiliano Ferraresi, 2023. "Immigration, Fear of Crime, and Public Spending on Security," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 39(1), pages 235-280.
    11. Nico Voigtländer & Hans-Joachim Voth, 2014. "Highway to Hitler," ECON - Working Papers 156, Department of Economics - University of Zurich.
    12. Bertacchini, Enrico & Dalle Nogare, Chiara, 2014. "Public provision vs. outsourcing of cultural services: Evidence from Italian cities," European Journal of Political Economy, Elsevier, vol. 35(C), pages 168-182.
    13. Gupta, Sanjeev & Liu, Estelle X. & Mulas-Granados, Carlos, 2016. "Now or later? The political economy of public investment in democracies," European Journal of Political Economy, Elsevier, vol. 45(C), pages 101-114.
    14. Klomp, Jeroen, 2023. "Political budget cycles in military expenditures: A meta-analysis," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1083-1102.
    15. Keefer, Philip & Scartascini, Carlos & Vlaicu, Razvan, 2022. "Demand-side determinants of public spending allocations: Voter trust, risk and time preferences," Journal of Public Economics, Elsevier, vol. 206(C).
    16. Arslan Razmi, 2018. "Politics-Driven Exchange Rate Cycles : East Asia vs. Latin America," UMASS Amherst Economics Working Papers 2018-14, University of Massachusetts Amherst, Department of Economics.
    17. Helene Ehrhart, 2013. "Elections and the structure of taxation in developing countries," Public Choice, Springer, vol. 156(1), pages 195-211, July.
    18. Leonardo Bonilla-Mejía & Iván Higuera-Mendieta, 2018. "Notas sobre la economía política del Caribe colombiano," Revista Economía y Región, Universidad Tecnológica de Bolívar, vol. 12(2), pages 7-41, December.
    19. Patricia Justino & Bruno Martorano, 2016. "Redistribution, inequality and political participation: Evidence from Mexico during the 2008 financial crisis," WIDER Working Paper Series 140, World Institute for Development Economic Research (UNU-WIDER).
    20. Natvik, Gisle J., 2013. "The political economy of fiscal deficits and government production," European Economic Review, Elsevier, vol. 58(C), pages 81-94.

    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:gam:jecomi:v:10:y:2022:i:9:p:220-:d:910648. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.