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
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Czech description
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Classification
Type
J<sub>x</sub> - Unclassified - Peer-reviewed scientific article (Jimp, Jsc and Jost)
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
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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
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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
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