Electoral Budget Cycles: The Case of the Argentine Provinces

23 Pages Posted: 27 Mar 2010

See all articles by Leandro Medina

Leandro Medina

George Washington University - Department of Economics; International Monetary Fund (IMF) - Western Hemisphere Department

Daniel Lema

Universidad del CEMA

Date Written: September 2004

Abstract

This paper presents sub-national evidence of electorally-motivated changes in the level of public expenditures, budgetary deficits and composition of public expenditures in Argentina. The empirical study is made using a dynamic panel data analysis (GMM) for 22 provinces during period 1985-2001. We find evidence of political cycles in policies around the election date. Results shows that deficits and public expenditures increase in election years. Evidence also suggest that expenditures shift toward more visible public investment and away from current consumption goods.

Keywords: Electoral Budget Cycles, Argentina, Political Economy, Fiscal Policy

JEL Classification: E62, D72

Suggested Citation

Medina, Leandro and Lema, Daniel, Electoral Budget Cycles: The Case of the Argentine Provinces (September 2004). Available at SSRN: https://ssrn.com/abstract=1576724 or http://dx.doi.org/10.2139/ssrn.1576724

Leandro Medina (Contact Author)

George Washington University - Department of Economics ( email )

Monroe Hall, Suite 340
2115 G Street, NW
Washington, DC 20052
United States

International Monetary Fund (IMF) - Western Hemisphere Department

700 19th Street NW
Washington, DC 20431
United States

Daniel Lema

Universidad del CEMA ( email )

1054 Buenos Aires
Argentina

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