The effects of fiscal decentralisation on the strength of political budget cycles in local expenditure |
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Authors: | Monika Köppl Turyna Grzegorz Kula Agata Balmas Kamila Waclawska |
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Institution: | 1. Agenda Austria, Vienna, Austria;2. Faculty of Economic Sciences, University of Warsaw, Warsaw, Poland |
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Abstract: | In this article we analyse the effects of political business cycles and fiscal decentralisation on the expenditure categories of Polish municipalities. We find convincing evidence demonstrating the impact of strong political business cycles in almost all expenditure categories, particularly for the categories of expenditure relevant to electoral success, such as infrastructure and social programmes. We find evidence that transfers to municipalities increase the strength of the electoral cycle. |
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Keywords: | Local expenditure political budget cycles fiscal autonomy decentralisation Poland |
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