Transparency, political polarization, and political budget cycles in OECD countries
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Transparency, political polarization, and political budget cycles in OECD countries. / Alt, James E.; Lassen, David Dreyer.
In: American Journal of Political Science, Vol. 50, No. 3, 2006, p. 530-550.Research output: Contribution to journal › Journal article › Research › peer-review
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TY - JOUR
T1 - Transparency, political polarization, and political budget cycles in OECD countries
AU - Alt, James E.
AU - Lassen, David Dreyer
N1 - JEL Classification: D72, E62, H62
PY - 2006
Y1 - 2006
N2 - We investigate the effects of fiscal transparency and political polarization on the prevalence of electoral cycles in fiscal balance. While some recent political economy literature on electoral cycles identifies such cycles mainly in weak and recent democracies, in contrast we show, conditioning on a new index of institutional fiscal transparency, that electoral cycles in fiscal balance are a feature of many advanced industrialized economies. Using a sample of 19 OECD countries in the 1990s, we identify a persistent pattern of electoral cycles in low(er) transparency countries, while no such cycles can be observed in high(er) transparency countries. Furthermore, we find, in accordance with recent theory, that electoral cycles are larger in politically more polarized countries
AB - We investigate the effects of fiscal transparency and political polarization on the prevalence of electoral cycles in fiscal balance. While some recent political economy literature on electoral cycles identifies such cycles mainly in weak and recent democracies, in contrast we show, conditioning on a new index of institutional fiscal transparency, that electoral cycles in fiscal balance are a feature of many advanced industrialized economies. Using a sample of 19 OECD countries in the 1990s, we identify a persistent pattern of electoral cycles in low(er) transparency countries, while no such cycles can be observed in high(er) transparency countries. Furthermore, we find, in accordance with recent theory, that electoral cycles are larger in politically more polarized countries
KW - Faculty of Social Sciences
KW - fiscal transparency
KW - political budget cycles
KW - electoral cycles
KW - fiscal policy
U2 - 10.1111/j.1540-5907.2006.00200.x
DO - 10.1111/j.1540-5907.2006.00200.x
M3 - Journal article
VL - 50
SP - 530
EP - 550
JO - American Journal of Political Science
JF - American Journal of Political Science
SN - 0092-5853
IS - 3
ER -
ID: 314538