Political budget cycles and media freedom

This paper examines the effects of elections on the conduct of central governments' fiscal policies. To do so, it uses a unique panel database that includes disaggregated spending and revenue series at the central government level for multiple countries over the 1975–2010 period. Examining poli...

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Main Authors: Veiga, Francisco José, Veiga, Linda Gonçalves, Morozumi, Atsuyoshi
Format: Article
Published: Elsevier 2017
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Online Access:https://eprints.nottingham.ac.uk/40248/
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author Veiga, Francisco José
Veiga, Linda Gonçalves
Morozumi, Atsuyoshi
author_facet Veiga, Francisco José
Veiga, Linda Gonçalves
Morozumi, Atsuyoshi
author_sort Veiga, Francisco José
building Nottingham Research Data Repository
collection Online Access
description This paper examines the effects of elections on the conduct of central governments' fiscal policies. To do so, it uses a unique panel database that includes disaggregated spending and revenue series at the central government level for multiple countries over the 1975–2010 period. Examining political environments under which incumbent governments generate political budget cycles (PBCs), and comparing the relative importance of factors influencing cycles, we identify media freedom as the factor that plays the most critical role. This result provides a micro-foundation for rational opportunistic models for PBCs that rely on asymmetry of information about politicians' competence, and also offers a way to relate different conditioning factors of PBCs, including fiscal transparency and the maturity of democracies. Further, we show that the election-year rise in budget deficits under low media freedom is primarily driven by an increase in the current, not capital, component of public expenditure.
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spelling nottingham-402482020-05-04T18:28:35Z https://eprints.nottingham.ac.uk/40248/ Political budget cycles and media freedom Veiga, Francisco José Veiga, Linda Gonçalves Morozumi, Atsuyoshi This paper examines the effects of elections on the conduct of central governments' fiscal policies. To do so, it uses a unique panel database that includes disaggregated spending and revenue series at the central government level for multiple countries over the 1975–2010 period. Examining political environments under which incumbent governments generate political budget cycles (PBCs), and comparing the relative importance of factors influencing cycles, we identify media freedom as the factor that plays the most critical role. This result provides a micro-foundation for rational opportunistic models for PBCs that rely on asymmetry of information about politicians' competence, and also offers a way to relate different conditioning factors of PBCs, including fiscal transparency and the maturity of democracies. Further, we show that the election-year rise in budget deficits under low media freedom is primarily driven by an increase in the current, not capital, component of public expenditure. Elsevier 2017-02-01 Article PeerReviewed Veiga, Francisco José, Veiga, Linda Gonçalves and Morozumi, Atsuyoshi (2017) Political budget cycles and media freedom. Electoral Studies, 45 . pp. 88-99. ISSN 0261-3794 Political budget cycles; Central government; Voter information; Media freedom; Fiscal policy composition http://www.sciencedirect.com/science/article/pii/S0261379416301792 doi:10.1016/j.electstud.2016.11.008 doi:10.1016/j.electstud.2016.11.008
spellingShingle Political budget cycles; Central government; Voter information; Media freedom; Fiscal policy composition
Veiga, Francisco José
Veiga, Linda Gonçalves
Morozumi, Atsuyoshi
Political budget cycles and media freedom
title Political budget cycles and media freedom
title_full Political budget cycles and media freedom
title_fullStr Political budget cycles and media freedom
title_full_unstemmed Political budget cycles and media freedom
title_short Political budget cycles and media freedom
title_sort political budget cycles and media freedom
topic Political budget cycles; Central government; Voter information; Media freedom; Fiscal policy composition
url https://eprints.nottingham.ac.uk/40248/
https://eprints.nottingham.ac.uk/40248/
https://eprints.nottingham.ac.uk/40248/