Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/159824
Authors: 
Dizaji, Sajjad Faraji
Farzanegan, Mohammad Reza
Naghavi, Alireza
Year of Publication: 
2015
Series/Report no.: 
Quaderni - Working Paper DSE 986
Abstract: 
This study examines how quality of political institutions affects the distribution of government budget in Iran. We first introduce a mechanism through which this can shift government expenditure from patronage to more constructive public spending. Using impulse response functions (IRF) and variance decomposition analysis (VDC) on the basis of Vector Autoregressive (VAR) model, our results imply that a positive shock towards more democratic institutions leads to negative and statistically significant response of military spending and positive and statistically significant response of education expenditures. Our results are robust to different political institutional quality indicators, ordering of variables in the VAR and different specifications of government spending categories.
JEL: 
H11
H41
P16
O53
O43
Persistent Identifier of the first edition: 
Creative Commons License: 
https://creativecommons.org/licenses/by-nc/3.0/
Document Type: 
Working Paper

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