Publication details
Political Business Cycle in Local Government. Case Study of Czech Municipalities
| Authors | |
|---|---|
| Year of publication | 2015 |
| Type | Article in Proceedings |
| Conference | Current Trends in Public Sector Research : Proceedings of the 19th International Conference (2015) |
| MU Faculty or unit | |
| Citation | |
| Field | Management and administrative |
| Keywords | political business cycle; local government; municipality; Czech Republic |
| Description | The politicians use some economic instruments in order to influence and get the most potential voters in upcoming elections. Specifically, politicians at local level use mainly public expenditure, especially public investment and expenditure on various projects that are so apparent that they may influence voters in their electoral decision-making. The aim of the paper is to examine whether changes in public expenditure of Czech municipalities, specifically in expenditure on non-investment transfers and on public investments, are affected by electoral cycle. The study analyses expenditure of all Czech municipalities over the period 2003-2013 and uses correlation analysis. Conclusions show that analyzed expenditure is influenced by the political business cycle. |