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Title:Political Effects on the Allocation of Public Expenditures: Empirical Evidence from OECD Countries PDF Logo
Authors:Potrafke, Niklas
Issue Date:2006
Series/Report no.:DIW-Diskussionspapiere 653
Abstract:This paper examines the effects of political determinants on the allocation of public expenditures. Analyzing an OECD panel from 1990 to 2004, a SURE model controls for the contemporaneous correlation between the different expenditure categories (COFOG). I find that left governments set other priorities than right governments: In particular, they increase spending for ?Environment protection?, ?Recreation; Culture and Religion? and ?Education?. The number of coalition partners as well as minority governments affects the allocation of public expenditures, too. In contrast, there are no election and pre-election year effects.
Subjects:allocation of public expenditures
partisan politics
JEL:D72
H50
E62
Document Type:Working Paper
Appears in Collections:DIW-Diskussionspapiere
Publikationen von Forscherinnen und Forschern des DIW

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