Current issue
News
From the Editors June 2022
Invitation
From the Editors September 2022
From the Editors November 2022
From the Editors January 2023
From the Editors March 2023
From the Editors September 2023
From the Editors December 2023
From the Editors September 2024
Archive
About the journal
About us
Focus and Scope
Editorial Team
Open Access Policy
Indexing and points
Contact
Subscription - print version of the journal
Business Model
Ethics statement
ORIGINAL ARTICLE
LOCAL POLITICAL BUSINESS CYCLES AND ADMINISTRATION SPENDING IN POLISH LOCAL GOVERNMENTS
1
Szkoła Główna Handlowa w Warszawie, Kolegium Gospodarki Światowej
Online publication date: 2019-06-28
Economic and Regional Studies 2019;12(2):187-199
KEYWORDS
ABSTRACT
Subject and purpose of work: The purpose of this article is to verify the hypothesis of the occurrence
of political business cycles at the self-governmental level in Poland. Materials and methods: The article presents a quantitative analysis of expenditures on remuneration
in the administration of Polish self-governments at the county (district) level (in the period 2007–2018)
and at province (regional) level (in the period 1999–2018) with the use of Arellano-Bond and LSDVC
estimators. Results: The panel data analysis makes it possible to conclude that in Polish self-governments cyclical
fluctuations of expenditure on remuneration can be observed. The increase in salaries depends on the
power of the ruling coalition as well as unemployment and the output gap in a region. In the case of
provinces and counties, also the increase of investment expenditures significantly affects the increase
of salaries. Conclusions: The results of the estimation of models clearly point to the presence of cyclical distortions
in remuneration in public administration, which are caused by the upcoming elections.
REFERENCES (36)
1.
Akhmedov, A., Zhuravskaya, E. (2004). Opportunistic Political Cycles: Test in a Young Democracy Setting. The Quarterly Journal of Economics, 119(4), 1301-1338. https://doi.org/10.1162/003355....
2.
Arellano, M., Bond, S. (1991). Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Review of Economic Studies, 58(2), 277–297. https://doi.org/10.2307/229796....
3.
Arulampalam, W., Dasgupta, S., Dhillon, A., Dutta, B. (2009). Electoral goals and center-state transfers: A theoretical model and empirical evidence from India. Journal of Development Economics, 88(1), 103-119. https://doi.org/10.1016/j.jdev....
4.
Babczuk, A. (2007). Polityczny cykl budżetowy w polskich gminach, V Forum Samorząd terytorialny w zintegrowanej Europie. Zeszyty Naukowe Uniwersytetu Szczecińskiego, 526, Szczecin 2009. https://doi.org/10.18276/epu.
5.
Banaszewska, M. (2017). Sustainability of fiscal policy in Polish voivodeships. Prace Naukowe Uniwersytetu Ekonomicznego we Wrocławiu, 482(482). https://doi.org/10.15611/pn.20....
6.
Banful, A. (2011). Do formula-based intergovernmental transfer mechanisms eliminate politically motivated targeting? Evidence from Ghana. Journal of Development Economics, 96(2), 380-390. https://doi.org/10.1016/j.jdev....
7.
Bhatti, Y., Hansen, K. (2013). Public employees lining up at the polls — the conditional effect of living and working in the same municipality. Public Choice, 156(1), 611-629. https:// 10.1007/s11127-012-9919-y.
8.
Brender, A., Drazen, A. (2005). Political budget cycles in new versus established democracies. Journal of Monetary Economics, 52(7), 1271-1295. https://doi.org/10.1016/j.jmon....
9.
Bruno, G. (2005). Approximating the Bias of the LSDV Estimator for Dynamic Unbalanced Panel Data Models. Economics Letters, 87(3), 361-366. https://doi.org/10.1016/j.econ....
10.
Corvalan, A., Cox, P., Osorio, R. (2018). Indirect political budget cycles: Evidence from Chilean municipalities. Journal of Development Economics, 133(4), 1-14. https://doi.org/10.1016/j.jdev....
11.
Drazen, A., Eslava, M. (2010). Electoral manipulation via voter-friendly spending: Theory and evidence. Journal of Development Economics, 92(1), 39-52. https://doi.org/10.1016/j.jdev....
12.
Dubois, E. (2016). Political Business Cycles 40 Years after Nordhaus. Public Choice, 166(1), 235–259. https://doi.org/10.1007/s11127....
13.
Foremny, D., Riedel, N. (2014). Business taxes and the electoral cycle. Journal of Public Economics, 115(4), 48-61. https://doi.org/10.1016/j.jpub....
14.
Judson, R., Owen, A. (1999). Estimating Dynamic Panel Data Models: A Guide for Macroeconomists. Economics Letters, 65(1), 9-15. https://doi.org/10.1016/S0165-....
15.
Klašnja, M. (2008). Electoral Rules, Forms of Government, and Political Budget Cycles in Transition Countries. Panoeconomicus, 55(2), 185-218. https://doi.org/10.2298/PAN080....
16.
Kopańska, A. (2013). Fly-paper and super fly-paper effect. Education at primary and lower secondary level in Poland - case study. W: The 21st NISPAcee Annual Conference: Regionalisation and Inter-regional Cooperation, Belgrade.
17.
Kukołowicz, P., Górecki, M. (2018). When incumbents can only gain: economic voting in local government elections in Poland. West European Politics, 41(3), 640-659. https://doi.org/10.1080/014023....
18.
Makčić, V. (2014). Political budget cycles at the municipal level in Croatia. Financial theory and practice, 38(1), 1-63. https://doi.org/10.3326/fintp.....
19.
Mourao, P.R. (2008). Political budget cycles and fiscal illusion – A panel data study. W: Perspectives on integration and globalization (s. 82-110), Munster: LIT Verlag.
20.
Nickell, S. (1981). Biases in Dynamic Models with Fixed Effects. Econometrica, 49(6), 1417-1426. https://doi.org/0012-9682/1981....
21.
Nordhaus, W. (1975). The Political Business Cycle. Review of Economic Studies, 42(2), 169-190. https://doi.org/10.2307/229652....
22.
Pacześ, P. (2015). Decyzje polityczne a cykl koniunkturalny w państwach inicjatywy wyszehradzkiej. Prace i materiały Instytutu Rozwoju Gospodarczego SGH, 95, 75-92.
23.
Persson, T., Tabellini, G. (2002). Political Economics: Explaining Economic Policy. MIT Press.
24.
Rogoff, K. (1990). Equilibrium Political Budget Cycles. American Economic Review, 80(1), 21-36. https://doi.org/10.3386/w2428.
25.
Rogoff, K., Sibert A. (1988). Elections and Macroeconomic Policy Cycles. Review of Economic Studies, 55(1), 1-16. https://doi.org/10.2307/229752....
26.
Rosenberg, J. (1992). Rationality and the political business cycle: The case of local government. Public Choice, 77(1), 71-81. https://doi.org/10.1007/bf0014....
27.
Sakurai, S., Menez-Filho, N. (2011). Opportunistic and partisan election cycles in Brazil: 28. new evidence at the municipal level. Public Choice, 148(1-2), 233-247. https://doi.org/10.1007/s11127....
28.
Sedmihradská, L., Kubík, R., Haas, J. (2011). Political Business Cycle in Czech Municipalities. Prague Economic Papers, 2011(1), 59-70. https://doi.org/10.18267/j.pep....
29.
Seitz, H. (2000). Fiscal Policy, Deficits and Politics of Subnational Governments: The Case of the German Laender. Public Choice, 102(3–4), 183–218. https://doi.org/10.1023/A:1005....
30.
Shapley, L., Shubik, M. (1954). A Method for Evaluating the Distribution of Power in a Committee System. American Political Science Review, 48(3), 787–792. https://doi.org/10.2307/195105....
31.
Shi, M., Svensson, J. (2002). Conditional Political Budget Cycles. C.E.P.R. Discussion Papers, 3352. https://doi.org/10.2307/250987....
32.
Solé-Ollé, A., Sorribas-Navarro, P. (2008). The effects of partisan alignment on the allocation of intergovernmental transfers. Differences-in-differences estimates for Spain. Journal of Public Economics, 92(12), 2302-2319. https://doi.org/10.1016/j.jpub....
33.
Swianiewicz, P. (2016). The Politics of Local Tax Policy-Making in Poland. NISPAcee Journal of Public Administration and Policy, 9. https://doi.org/10.1515/nispa-....
34.
Swianiewicz, P., Łukomska, J. (2015). Local tax policies in the limited autonomy of the revenue collection system in Poland. W: Interaction between local expenditure responsibilities and local tax policy (s. 255-280). Copenhagen.
35.
Ustawa z dnia 27 sierpnia 2009 r. o finansach publicznych (Dz.U. 2009 nr 157 poz. 1240) [Public Finance Act of 27th August 2009 (JoL of 2009, No. 157, item 1240)].
36.
Veiga, G., Veiga, F. (2007). Political business cycles at the municipal level. Public choice, 131(1), 45-64. https://doi.org/10.1007/s11127....
| eISSN: | 2451-182X |
| ISSN: | 2083-3725 |
Digitalization of Economic and Regional Studies/ Studia Ekonomiczne i Regionalne – task financed under the agreement No. 819/P-DUN/2018 by the Minister of Science and Higher Education allocated to the activities of disseminating science.
© 2006-2024 Journal hosting platform by Bentus
We process personal data collected when visiting the website. The function of obtaining information about users and their behavior is carried out by voluntarily entered information in forms and saving cookies in end devices. Data, including cookies, are used to provide services, improve the user experience and to analyze the traffic in accordance with the Privacy policy. Data are also collected and processed by Google Analytics tool (more).
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
You can change cookies settings in your browser. Restricted use of cookies in the browser configuration may affect some functionalities of the website.
