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Budgets, expenditure composition and political manipulation

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  • Vítor Castro
  • Rodrigo Martins

Abstract

This paper analyses the presence of political cycles in Portuguese Governments’ expenditures using monthly data over the period 1991–2013 for the main categories of government expenditures. The results indicate that Portuguese Governments act opportunistically regarding the budget surplus and that they favour capital instead of current spending near to the elections. Moreover, right-wing governments are more prone to reduce expenditures and deficits after the elections than left-wing ones. A deeper disaggregated analysis of the components of government expenditures corroborates these findings while disentangling other relevant patterns of political manipulation in Portugal.

Suggested Citation

  • Vítor Castro & Rodrigo Martins, 2019. "Budgets, expenditure composition and political manipulation," International Review of Applied Economics, Taylor & Francis Journals, vol. 33(2), pages 172-187, March.
    • Handle: RePEc:taf:irapec:v:33:y:2019:i:2:p:172-187
    DOI: 10.1080/02692171.2017.1379474
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    Cited by:

    1. Potrafke, Niklas, 2020. "General or central government? Empirical evidence on political cycles in budget composition using new data for OECD countries," European Journal of Political Economy, Elsevier, vol. 63(C).
    2. 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.
    3. J. Stephen Ferris & Bharatee Bhusana Dash, 2019. "Expenditure visibility and voter memory: a compositional approach to the political budget cycle in Indian states, 1959–2012," Economics of Governance, Springer, vol. 20(2), pages 129-157, June.
    4. 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.

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