|
EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/18996
|
| | |
| Title: | | Has the stability and growth pact impeded political budget cycles in the European Union?  |
| Authors: | | Mink, Mark de Haan, Jakob |
| Issue Date: | | 2005 |
| Series/Report no.: | | CESifo working papers 1532 |
| Abstract: | | This paper examines whether there is a political budget cycle (PBC) in countries in the euro area. Using a multivariate model for the period 1999-2004 and various election indicators we find strong evidence that the Stability and Growth Pact has not restricted fiscal policy makers in the euro area in pursuing expansionary policies before elections. In an election-year – but not in the year prior to the election – the budget deficit increases. This result is in line with third generation PBC models, which are based on moral hazard. We also find a significant but small partisan effect on fiscal policy outcomes. |
| Subjects: | | fiscal policy political budget cycle Stability and Growth Pact |
| JEL: | | D78 E62 D72 |
| Document Type: | | Working Paper |
| Appears in Collections: | | CESifo Working Papers, CESifo Group Munich
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/18996
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|