Final published version
Research output: Contribution to Journal/Magazine › Journal article › peer-review
Research output: Contribution to Journal/Magazine › Journal article › peer-review
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TY - JOUR
T1 - Political pressure and procyclical expenditure
T2 - an analysis of the expenditures of state governments in Mexico
AU - Abbott, Andrew James
AU - Cabral, René
AU - Jones, Philip
AU - Palacios Rodriguez, Roberto
PY - 2014/12/13
Y1 - 2014/12/13
N2 - Government expenditures are procyclical if they increase in periods of economic growth and decrease in periods of economic downturn. This paper tests the proposition that (within federations) political pressures for public expenditure increase the likelihood that expenditures and intergovernmental transfers will be procyclical. An analysis of political pressures in Mexico suggests that political pressures will produce a distinct pattern of procyclical expenditures across fiscal tiers and across government budgets. This prediction is tested with reference to the expenditures of 31 states in Mexico between 2005 and 2010.
AB - Government expenditures are procyclical if they increase in periods of economic growth and decrease in periods of economic downturn. This paper tests the proposition that (within federations) political pressures for public expenditure increase the likelihood that expenditures and intergovernmental transfers will be procyclical. An analysis of political pressures in Mexico suggests that political pressures will produce a distinct pattern of procyclical expenditures across fiscal tiers and across government budgets. This prediction is tested with reference to the expenditures of 31 states in Mexico between 2005 and 2010.
KW - Business cycles
KW - Fiscal Policy
KW - Voracity Effects
KW - Mexico
KW - Latin America
U2 - 10.1016/j.ejpoleco.2014.12.001
DO - 10.1016/j.ejpoleco.2014.12.001
M3 - Journal article
VL - 37
SP - 195
EP - 206
JO - European Journal of Political Economy
JF - European Journal of Political Economy
SN - 0176-2680
ER -