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The effects of fiscal decentralisation on the strength of political budget cycles in local expenditure

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  • Monika Köppl Turyna
  • Grzegorz Kula
  • Agata Balmas
  • Kamila Waclawska

Abstract

In this article we analyse the effects of political business cycles and fiscal decentralisation on the expenditure categories of Polish municipalities. We find convincing evidence demonstrating the impact of strong political business cycles in almost all expenditure categories, particularly for the categories of expenditure relevant to electoral success, such as infrastructure and social programmes. We find evidence that transfers to municipalities increase the strength of the electoral cycle.

Suggested Citation

  • 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.
    • Handle: RePEc:taf:flgsxx:v:42:y:2016:i:5:p:785-820
    DOI: 10.1080/03003930.2016.1181620
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    Cited by:

    1. Björn Kauder & Manuela Krause & Niklas Potrafke, 2018. "Electoral cycles in MPs’ salaries: evidence from the German states," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 25(4), pages 981-1000, August.
    2. Jordi Sanjuán & Pau Rausell & Vicente Coll & Raül Abeledo, 2020. "Mayors, Using Cultural Expenditure in An Opportunistic Way Improves the Chances of Re-Election, but Do Not Do It: Revisiting Political Budget Cycles," Sustainability, MDPI, vol. 12(21), pages 1-15, October.
    3. 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.
    4. Remo Nitschke & Felix Roesel, 2023. "Elite Persistence and Policy Persistence: Re-Installed Mayors from Weimar Germany," CESifo Working Paper Series 10251, CESifo.
    5. Anna Białek‐Jaworska, 2022. "Revenue diversification and municipally owned companies’ role in shaping the debt of municipalities," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 93(4), pages 931-975, December.
    6. 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).
    7. 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.
    8. Stobieniecka Weronika & Białek-Jaworska Anna, 2020. "Do local governments use municipal companies for off-balance-sheet financing?," Central European Economic Journal, Sciendo, vol. 7(54), pages 242-257, January.

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