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Does e-governance mitigate the political budget cycle?

  • This paper studies the impact of governmental transparency on the political business cycle. The literature on electoral cycles finds evidence that cycles depend on the stage of the economy. However, we show a reliance of the cycle on transparency. We use data for G7 countries and compare it with less developed OECD countries. Our theory states that transparency reduces the political cycles due to peer pressure and by voting outs. We confirm the theory with an econometric assessment of 34 countries from 1970 to 2012. We discover smaller cycles in countries with a higher transparency, especially in G7-countries.

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Name:Herzog, Bodo; Haslanger, Patrick
Erschienen in:International proceedings of economics development and research
Publisher:IACSIT Press
Place of publication:Singapore
Document Type:Article
Year of Publication:2014
Tag:Google search; e-governance; political cycles; transparency
First Page:1
Last Page:8
Dewey Decimal Classification:320 Politik
Open Access:Ja
Licence (German):License Logo  Open Access