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Opportunistic Political Cycles: Test in a Young Democracy Setting

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  • Akhmed Akhmedov

    (Center for Economic and Financial Research)

  • Ekaterina Zhuravskaya

    (Center for Economic and Financial Research)

Abstract

This paper tests the theory of opportunistic cycles in a decade-old democracy–Russia–finds strong evidence of cycles, and provides an explanation for why previous literature often found weaker evidence. Using regional monthly panel data, we find that: (1) the budget cycle is sizable and short-lived; public spending shifts towards direct monetary transfers to voters; (2) the magnitude of the cycle decreases with democracy, government transparency, media freedom, voter awareness, and over time; and (3) pre-electoral manipulation increases incumbents’ chances for reelection. The short length of the cycle explains underestimation of its size by previous literature because of low frequency data used in previous studies.

Suggested Citation

  • Akhmed Akhmedov & Ekaterina Zhuravskaya, 2004. "Opportunistic Political Cycles: Test in a Young Democracy Setting," Economics Working Papers 0047, Institute for Advanced Study, School of Social Science.
    • Handle: RePEc:ads:wpaper:0047
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    More about this item

    Keywords

    Opportunistic Political Cycles; Maturity of Democracy; Russia; Fiscal Policy; Government Transparency;
    All these keywords.

    JEL classification:

    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • P35 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
    • P16 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Capitalist Institutions; Welfare State
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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