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Government weakness and electoral cycles in local public debt: evidence from Flemish municipalities
[Regierungsschwäche und Wahlzyklen in Zeiten kommunaler Verschuldung: das Beispiel flämischer Kommunen]

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  • Geys, Benny

Abstract

Empirical research on Political Business (and Budget) Cycles is more supportive for electoral cycles in policies than in macro-economic outcomes. But even pre-electoral policy cycles receive no unanimous confirmation. In the present paper, we give credence to recent arguments that this may be due to the disregard for the political, economic and institutional context in which politicians make policy decisions. Specifically, we argue that the level of political fragmentation of the government affects both the need for and possibility to engage in opportunistic policy cycles. An analysis of local public debt data for 296 Flemish municipalities provides empirical support for this contention.

Suggested Citation

  • Geys, Benny, 2006. "Government weakness and electoral cycles in local public debt: evidence from Flemish municipalities [Regierungsschwäche und Wahlzyklen in Zeiten kommunaler Verschuldung: das Beispiel flämischer Kom," Discussion Papers, Research Unit: Market Processes and Governance SP II 2006-06, WZB Berlin Social Science Center.
    • Handle: RePEc:zbw:wzbmpg:spii200606
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    Cited by:

    1. Traettino, Salvador, 2023. "Migración forzada y finanzas públicas locales: evidencia de los municipios en Colombia," IDB Publications (Working Papers) 12926, Inter-American Development Bank.
    2. Stijn Goeminne & Benny Geys & Carine Smolders, 2008. "Political fragmentation and projected tax revenues: evidence from Flemish municipalities," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 15(3), pages 297-315, June.
    3. Salvador Traettino, 2022. "Migración forzada y finanzas públicas locales: Evidencia de los municipios en Colombia," Documentos CEDE 20335, Universidad de los Andes, Facultad de Economía, CEDE.

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    More about this item

    Keywords

    Political Budget Cycles; local public debt; political fragmentation; elections; municipalities;
    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
    • H72 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Budget and Expenditures
    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing

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