Abstract
This paper examines the effects of political determinants on the allocation of public expenditures. Analyzing an OECD panel from 1990 to 2004, a SURE model controls for the contemporaneous correlation between the different expenditure categories (COFOG). I find that left governments set other priorities than right governments: In particular, they increase spending for ?Environment protection?, ?Recreation; Culture and Religion? and ?Education?. The number of coalition partners as well as minority governments affects the allocation of public expenditures, too. In contrast, there are no election and pre-election year effects.
Item Type: | Paper |
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Faculties: | Economics Economics > Chairs > CESifo-Professorship for Public Finance |
Subjects: | 300 Social sciences > 330 Economics |
Language: | English |
Item ID: | 19315 |
Date Deposited: | 15. Apr 2014, 08:49 |
Last Modified: | 29. Apr 2016, 09:16 |