Political Business Cycle in the Czech Republic: Case of
Municipalities

J 2015

Political Business Cycle in the Czech Republic: Case of Municipalities

PLAČEK, Michal; Milan Jan PŮČEK; František OCHRANA; Milan KŘÁPEK; Lenka MATĚJOVÁ et al.

Základní údaje

Originální název

Political Business Cycle in the Czech Republic: Case of Municipalities

Autoři

PLAČEK, Michal; Milan Jan PŮČEK; František OCHRANA; Milan KŘÁPEK a Lenka MATĚJOVÁ

Vydání

Prague Economic Papers : Quarterly Journal of Economic Theory and Policy, Vysoká škola ekonomická v Praze, 2015, 1210-0455

Další údaje

Jazyk

angličtina

Typ výsledku

Článek v odborném periodiku

Obor

50600 5.6 Political science

Stát vydavatele

Česká republika

Utajení

není předmětem státního či obchodního tajemství

Odkazy

URL

Impakt faktor

Impact factor: 0.825

Označené pro přenos do RIV

Organizační jednotka

Ekonomicko-správní fakulta

DOI

https://doi.org/10.18267/j.pep.566

Klíčová slova anglicky

investment expenditures; political business cycle; political business cycle at the level of municipalities in the Czech Republic; transfers

Změněno: 9. 12. 2015 21:01, Mgr. Ing. Lenka Matějová, Ph.D.

Anotace

V originále

The study analyses expenditures of all municipalities of the Czech Republic over the period 2003–2013. It aims to examine whether changes in municipal spending get affected by the electoral cycle. The analysis has proven that expenditures of municipalities of the Czech Republic are influenced by the political cycle. However, the political business cycle has at the level of municipalities (compared to the macroeconomic level) its peculiarities. These arise mainly from limited options of municipal politicians to use economic instruments to win electoral votes in elections. To receive electoral votes, municipal politicians use mainly public investments and projects that are at the level of municipalities so apparent that they may influence voters in their electoral decision-making. Prior to elections, expenditures on investments significantly increase for all municipal size groups. For municipal size groups of over 50,000 residents, however, they are (per capita) higher compared to smaller municipal size groups. This may be explained by the fact that these municipalities have higher disposable resources (higher per capita own budgetary revenues, higher potential to acquire resources to co-finance municipal projects and broader portfolio of debt financing). Expenditures on transfers do not significantly change prior to municipal elections. We interpret this finding in a way that politicians prefer such investment projects that are "visible". Transfers are used to pay for certain current expenses for which municipalities may (in accordance with the established rules) apply through grants.

Citovat

PLAČEK, Michal; Milan Jan PŮČEK; František OCHRANA; Milan KŘÁPEK a Lenka MATĚJOVÁ. Political Business Cycle in the Czech Republic: Case of Municipalities. Prague Economic Papers : Quarterly Journal of Economic Theory and Policy. Vysoká škola ekonomická v Praze, 2015, 17 s. ISSN 1210-0455. Dostupné z: https://doi.org/10.18267/j.pep.566.

@article{1320607,
   author = {Plaček, Michal and Půček, Milan Jan and Ochrana, František and Křápek, Milan and Matějová, Lenka},
   doi = {https://doi.org/10.18267/j.pep.566},
   keywords = {investment expenditures; political business cycle; political business cycle at the level of municipalities in the Czech Republic; transfers},
   language = {eng},
   issn = {1210-0455},
   journal = {Prague Economic Papers : Quarterly Journal of Economic Theory and Policy},
   title = {Political Business Cycle in the Czech Republic: Case of Municipalities},
   url = {http://www.vse.cz/pep/566},
   year = {2015}
}

TY  - JOUR
ID  - 1320607
AU  - Plaček, Michal - Půček, Milan Jan - Ochrana, František - Křápek, Milan - Matějová, Lenka
PY  - 2015
TI  - Political Business Cycle in the Czech Republic: Case of Municipalities
JF  - Prague Economic Papers : Quarterly Journal of Economic Theory and Policy
PB  - Vysoká škola ekonomická v Praze
SN  - 12100455
KW  - investment expenditures
KW  - political business cycle
KW  - political business cycle at the level of municipalities in the Czech Republic
KW  - transfers
UR  - http://www.vse.cz/pep/566
N2  - The study analyses expenditures of all municipalities of the Czech Republic over the period 2003–2013. It aims to examine whether changes in municipal spending get affected by the electoral cycle. The analysis has proven that expenditures of municipalities of the Czech Republic are influenced by the political cycle. However, the political business cycle has at the level of municipalities (compared to the macroeconomic level) its peculiarities. These arise mainly from limited options of municipal politicians to use economic instruments to win electoral votes in elections. To receive electoral votes, municipal politicians use mainly public investments and projects that are at the level of municipalities so apparent that they may influence voters in their electoral decision-making. Prior to elections, expenditures on investments significantly increase for all municipal size groups. For municipal size groups of over 50,000 residents, however, they are (per capita) higher compared to smaller municipal size groups. This may be explained by the fact that these municipalities have higher disposable resources (higher per capita own budgetary revenues, higher potential to acquire resources to co-finance municipal projects and broader portfolio of debt financing). Expenditures on transfers do not significantly change prior to municipal elections. We interpret this finding in a way that politicians prefer such investment projects that are "visible". Transfers are used to pay for certain current expenses for which municipalities may (in accordance with the established rules) apply through grants.
ER  -

PLAČEK, Michal; Milan Jan PŮČEK; František OCHRANA; Milan KŘÁPEK a Lenka MATĚJOVÁ. Political Business Cycle in the Czech Republic: Case of Municipalities. \textit{Prague Economic Papers : Quarterly Journal of Economic Theory and Policy}. Vysoká škola ekonomická v Praze, 2015, 17 s. ISSN~1210-0455. Dostupné z: https://doi.org/10.18267/j.pep.566.

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