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Electoral Cycles And Local Government Debt Management

Electoral Cycles And Local Government Debt Management Abstract The literature provides both theories and empirical assessments that link national electoral cycles and opportunistic incumbents' behaviour. However, at the subnational level the literature is scarce. Using a panel of 238 Spanish municipalities over the period 1992–2005, this paper investigates for the first time in Spain whether electoral events contribute to shape municipal debt policies. We show that the electoral cycle influences the municipal debt per capita. Furthermore, both weak (no-majority) and wealthier municipal governments have higher levels of debt per capita. Finally, our data show that the 2001 Spanish Budgetary Stability Law (stemming from the European Stability and Growth Pact) appears to have reduced the electoral effect on municipal debt per capita. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Local Government Studies Taylor & Francis

Electoral Cycles And Local Government Debt Management

26 pages

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References (97)

Publisher
Taylor & Francis
Copyright
Copyright Taylor & Francis Group, LLC
ISSN
1743-9388
eISSN
0300-3930
DOI
10.1080/03003930.2012.683861
Publisher site
See Article on Publisher Site

Abstract

Abstract The literature provides both theories and empirical assessments that link national electoral cycles and opportunistic incumbents' behaviour. However, at the subnational level the literature is scarce. Using a panel of 238 Spanish municipalities over the period 1992–2005, this paper investigates for the first time in Spain whether electoral events contribute to shape municipal debt policies. We show that the electoral cycle influences the municipal debt per capita. Furthermore, both weak (no-majority) and wealthier municipal governments have higher levels of debt per capita. Finally, our data show that the 2001 Spanish Budgetary Stability Law (stemming from the European Stability and Growth Pact) appears to have reduced the electoral effect on municipal debt per capita.

Journal

Local Government StudiesTaylor & Francis

Published: Feb 1, 2013

Keywords: Electoral cycle; local government; debt

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