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Does transparency mitigate the political budget cycle?

  • The purpose of this paper is to study the impact of transparency on the political budget cycle (PBC) over time and across countries. So far, the literature on electoral cycles finds evidence that cycles depend on the stage of an economy. However, the author shows – for the first time – a reliance of the budget cycle on transparency. The author uses a new data set consisting of 99 developing and 34 Organization for Economic Cooperation and Development countries. First, the author develops a model and demonstrates that transparency mitigates the political cycles. Second, the author confirms the proposition through the econometric assessment. The author uses time series data from 1970 to 2014 and discovers smaller cycles in countries with higher transparency, especially G8 countries.

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Author of HS ReutlingenHerzog, Bodo
Erschienen in:Journal of economic studies
Place of publication:Bradford
Document Type:Journal article
Publication year:2017
Tag:Google search data; e-governance; internet data (Google data); political budget cycle; transparency
Page Number:18
First Page:666
Last Page:689
DDC classes:330 Wirtschaft
Open access?:Nein
Licence (German):License Logo  In Copyright - Urheberrechtlich geschützt