POLITICAL BUDGET CYCLES IN THE EUROPEAN UNION – POST-COMMUNIST HERITAGE
Keywords: political budget cycle (PBC), election cycle, general government expenditure, fiscal manipulation, European Union, EU post-communist countries
AbstractWe test the hypothesis that post-communist history affect election cycles in the European Union countries. We show that pre-election fiscal manipulation increase total public spending per capita by 1.9% and three specific spending categories, i.e. general public services, public order and safety, and economic affairs in Central and Eastern Europe democracies with post-communist roots. At the same time we observe no significant spending deviations in remaining EU Member States, except expenditure linked to environmental protection. Our results indicate cross-country heterogeneity of political budget cycles (PBCs) in the EU, conditional on political system history.
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How to Cite
Wielechowski, M. (2018). POLITICAL BUDGET CYCLES IN THE EUROPEAN UNION – POST-COMMUNIST HERITAGE. Acta Scientiarum Polonorum. Oeconomia, 17(2), 125-132. https://doi.org/10.22630/ASPE.2018.17.2.28