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Political Business Cycle in Czech Republic. Case of Municipalities

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F26968631%3A_____%2F16%3AN0000018" target="_blank" >RIV/26968631:_____/16:N0000018 - isvavai.cz</a>

  • Alternative codes found

    RIV/00216224:14560/16:00090295

  • Result on the web

    <a href="https://www.vse.cz/pep/566" target="_blank" >https://www.vse.cz/pep/566</a>

  • DOI - Digital Object Identifier

    <a href="http://dx.doi.org/https://doi.org/10.18267/j.pep.566" target="_blank" >https://doi.org/10.18267/j.pep.566</a>

Alternative languages

  • Result language

    angličtina

  • Original language name

    Political Business Cycle in Czech Republic. Case of Municipalities

  • Original language description

    The study analyses expenditures of all municipalities of the Czech Republic over the period 2003–2013. It aims to examine whether changes in municipal spending get affected by the electoral cycle. The analysis has proven that expenditures of municipalities of the Czech Republic are influenced by the political cycle. However, the political business cycle has at the level of municipalities (compared to the macroeconomic level) its peculiarities. These arise mainly from limited options of municipal politicians to use economic instruments to win electoral votes in elections. To receive electoral votes, municipal politicians use mainly public investments and projects that are at the level of municipalities so apparent that they may influence voters in their electoral decision-making. Prior to elections, expenditures on investments significantly increase for all municipal size groups. For municipal size groups of over 50,000 residents, however, they are (per capita) higher compared to smaller municipal size groups. This may be explained by the fact that these municipalities have higher disposable resources (higher per capita own budgetary revenues, higher potential to acquire resources to co-finance municipal projects and broader portfolio of debt financing). Expenditures on transfers do not significantly change prior to municipal elections. We interpret this finding in a way that politicians prefer such investment projects that are "visible". Transfers are used to pay for certain current expenses for which municipalities may (in accordance with the established rules) apply through grants.

  • Czech name

  • Czech description

Classification

  • Type

    J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)

  • CEP classification

    AH - Economics

  • OECD FORD branch

Result continuities

  • Project

  • Continuities

    V - Vyzkumna aktivita podporovana z jinych verejnych zdroju

Others

  • Publication year

    2016

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Name of the periodical

    Prague Economics Papers

  • ISSN

    1210-0455

  • e-ISSN

  • Volume of the periodical

    25

  • Issue of the periodical within the volume

    3

  • Country of publishing house

    CZ - CZECH REPUBLIC

  • Number of pages

    17

  • Pages from-to

    304-320

  • UT code for WoS article

    000378669500004

  • EID of the result in the Scopus database