Taxation and political business cycles in EU economies

Ανδρικόπουλος, Ανδρέας; Loizides, Ioannis; Prodromidis, Kyprianos

doi:10.1080/00036840500427106

Cited by 13 publications

(3 citation statements)

References 34 publications

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“…Rational expectation models of political business cycles have received strong empirical support in studies by Alesina and Roubini (1992) and Alesina et al (1997) for OECD countries. In contrast, Andrikopoulos et al (2004, 2006) test whether incumbent national governments of the EU member states manipulate the fiscal policy instruments in order to create national political business cycles, opportunistic or partisan. Their empirical evidence does not support this hypothesis.…”

Section: Introductionmentioning

confidence: 99%

A Common Election Day for the Euro Zone?

Breuss

2008

Kyklos

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This paper tests for the Euro zone the hypothesis put forward by Sapir and Sekkat (1999) that synchronizing elections might improve welfare. Implementing political business cycle features into a politico-macroeconomic model of the Euro zone allows us to simulate the effects of adopting a common election day in the 12 Euro zone member states. The results support most of the theoretical predictions by Sapir-Sekkat: (i) Synchronizing the elections could enhance GDP growth, reduce unemployment, but leads to increased inflation and in some countries to a deterioration of the budget; higher inflation could force the ECB to monetary restrictions. (ii) If the synchronization happens asymmetrically - either only in the large or only in the small Euro zone countries - the result depends on the size of the spillovers. (iii) As anticipated in Sapir-Sekkat a common election day is a further step towards the desired 'European business cycle', however, at the cost of increasing its amplitude. Harmonizing elections is another method of policy coordination. Whether this leads to higher welfare is a matter of weighting the different macroeconomic outcomes and it also depends on the model applied. Copyright 2008 Blackwell Publishing Ltd..

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Section: Introductionmentioning

confidence: 99%

A Common Election Day for the Euro Zone?

Breuss

2008

Kyklos

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“…In these years, the dummy variable gets 1, and 0 in the others. Andrikopoulos et al (2006) then take into account how long the political leaders have been in power. Another possible solution comes from Bracco et al (2013), who claim that attention should be paid to the development of the electoral cycle itself.…”

Section: The Factor Of Holding Parliamentary Elections As the Main Exmentioning

confidence: 99%

Proposal for an Alternative Indicator for Testing the Presence of the Political-Budget Cycle in the Case of Tax Policy

Křápek¹,

Formanová²

2017

NISPAcee Journal of Public Administration and Policy

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Th e content of this paper is a proposal for a new explanatory variable that can be used instead of commonly used variables expressing the dates of parliamentary elections. Th e proposed variable is then used to verify the existence of the impact of the political-budget cycle in the area of taxation on a sample of countries belonging to the European Union (EU28) over the period from 2000 to 2012. Combining the use of this variable and the Pearson correlation coeffi cient, a statistically signifi cant eff ect of PBC was identifi ed, particularly in the fi eld of indirect excise taxes, and especially for countries belonging to the group of new EU Member States. Th e article also contains a comparison of results using traditional indicators which take into account the date of parliamentary elections and the results using a new variable. Th e results obtained show that with the help of two of the four indicators, statistically signifi cant changes in tax policy in the area of indirect excise duties were identifi ed. When evaluating a new variable, it can be noted that it is a variable which is appropriate for testing the eff ect of PBC, since not only has the number of statistically signifi cant correlation coeffi cients been increased, but additionally, illogical results contrary to PBC theory have not been identifi ed.

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“…Econ., Florianópolis, v. 21 n. 1, p. 01 -24, dez/mar. 2018ISSN 2175 Esse comportamento oportunista foi estudados também ao nível das nações, por Vergne (2006), Andrikopoulos et al (2006), Potrafke (2012), Katsimi e Sarantides (2012), Ehrhart (2013, Morozumi, Veiga e Veiga (2014). Para os governos estaduais pode-se citar os trabalhos de Blais e Nadeau (1992), Berger e Woitck (1997), Seitz (1998), Kneebone e Mckenzie (2001), Akhmedov e Zhuravskaya (2004), Tellier (2006), Nakaguma e Bender (2006) e Lautenschlage (aceito para publicação) Rogoff (1990) percebeu que há, geralmente, uma alteração na composição dos gastos governamentais, em anos com eleições, ou seja, há uma preferência por despesas que tenham uma maior e imediata visibilidade.…”

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Ciclos político-orçamentários nos municípios de Santa Catarina

Lautenschlage

2018

Text. Econ.

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Este trabalho examina a existência de ciclos político-orçamentários ao nível dos municípios do Estado brasileiro de Santa Catarina. Foram utilizados dados anuais de 292 municípios catarinenses entre 2003 e 2014, para que fossem realizados diversos testes empíricos. Encontrou-se indícios da existência de manipulações nos investimento, nas receitastributárias e nas operações de crédito em períodos eleitorais.Os resultados sugerem no ano subsequente às eleições municipais, há uma redução das despesas totais, dos investimentos, dos tributos arrecadados e há uma melhora no saldo fiscal. Evidenciou-se, também, que o gênero, a formação superior e o alinhamento político ao governador de estado, têm influência na condução da política fiscal ao nível dos municípios catarinenses, assim como o nível do produto, a sua variação e as características demográficas.

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Taxation and political business cycles in EU economies

Cited by 13 publications

References 34 publications

A Common Election Day for the Euro Zone?

A Common Election Day for the Euro Zone?

Proposal for an Alternative Indicator for Testing the Presence of the Political-Budget Cycle in the Case of Tax Policy

Ciclos político-orçamentários nos municípios de Santa Catarina

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