Prague Economic Papers 2016, 25(3):304-320 | DOI: 10.18267/j.pep.566

Political Business Cycle in the Czech Republic: Case of Municipalities

Michal Plaček1, Milan Půček2, František Ochrana3, Milan Křápek4, Lenka Matějová5
1 Faculty of Social Sciences, Charles University, Prague, Czech Republic (michalplacek@seznam.cz).
2 Faculty of Social Sciences, Charles University, Prague, Czech Republic (milan.pucek@seznam.cz).
3 Faculty of Social Sciences, Charles University, Prague, Czech Republic (ochrana@fsv.cuni.cz).
4 Private College of Economic Studies, Znojmo (krapek@svse.cz).
5 Faculty of Economics and Administration, Masaryk University, Brno, Czech Republic (175001@mail.muni.cz).

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.

Klíčová slova: transfers, political business cycle at the level of municipalities in the Czech Republic, political business cycle, investment expenditures
JEL classification: G14, H57

Zveřejněno: 1. leden 2016  Zobrazit citaci

ACS AIP APA ASA Harvard Chicago Chicago Notes IEEE ISO690 MLA NLM Turabian Vancouver
Plaček, M., Půček, M., Ochrana, F., Křápek, M., & Matějová, L. (2016). Political Business Cycle in the Czech Republic: Case of Municipalities. Prague Economic Papers, 25(3), 304-320. doi: 10.18267/j.pep.566
Stáhnout citaci
  • BibTeX (.bib)
  • Bookends (.ris)
  • EasyBib (.ris)
  • EndNote (.enw)
  • EndNote 8 (.xml)
  • ISI WoS (.isi)
  • Medlars (.medlars)
  • Mendeley (.ris)
  • MODS (.xml)
  • Papers (.ris)
  • RefWorks (.txt)
  • RefManager (.ris)
  • RIS (.ris)
  • MS Word (.xml)
  • Zotero (.ris)
    • Zobrazit celý článek

    Reference

    1. Alesina, A. (1987), "Macroeconomic Policy in a Two-Party System as a Repeated Game." The Quarterly Journal of Economics, Vol. 102, No. 3, pp. 651-678, http://dx.doi.org/10.2307/1884222 Přejít k původnímu zdroji...
    2. Alesina, A., Sachs, J. (1988), "Political Parties and the Business Cycle in the United States 1948-1984." Journal of Money Credit and Banking, Vol. 20, No. 1, pp. 63-82, http://dx.doi.org/10.2307/1992667 Přejít k původnímu zdroji...
    3. Alesina, A., Roubini, N. (1992), "Political Cycles in OECD Economies." Review of Economic Studies, Vol. 59, No. 4, pp. 663-688, http://dx.doi.org/10.2307/2297992 Přejít k původnímu zdroji...
    4. Brender, A., Drazen, A. (2005), "Political Budget Cycles in New Versus Established Democracies." Journal of Monetary Economics, Vol. 52, No. 7, pp. 1271-1295, http://dx.doi.org/10.1016/j.jmoneco.2005.04.004 Přejít k původnímu zdroji...
    5. Brechler, J., Geršl, A. (2011), "Political Legislation Cycle in the Czech Republic." Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague. IES Working Paper, No. 21/2011.
    6. Downs, A. (1998), "Political Theory and Public Choice." The Selected Essays of Anthony Downs. Vol. 1, MPG Kooks Ltd, Bodmin, Cornwall.
    7. Drazen, A. (2000), "The Political Business Cycle after 25 Years." NBER Macroeconomics Annual, Vol. 15, No. 1, pp. 75-117, http://dx.doi.org/10.2307/3585387 Přejít k původnímu zdroji...
    8. Drazen, A. (2001), "The Political Business Cycle After 25 Years," in Bernanke, B. S., Rogoff, K., eds., NBER Macroeconomics Annual 2000. Boston: MIT Press, pp. 75-198. Přejít k původnímu zdroji...
    9. Hibbs, D. A. (1977), "Political Parties and Macroeconomic Policy." The American Political Science Review, Vol. 71, No. 4, pp. 1467-1487, http://dx.doi.org/10.2307/1961490 Přejít k původnímu zdroji...
    10. Janků, J. (2013), "The Political Business Cycle in the Czech Republic." Central European Review of Economic Issues. ER-CEREI, Vol. 16, pp. 121-130. Přejít k původnímu zdroji...
    11. Lindbeck, A. (1976), "Stabilization Policy in Open Economies with Endogenous Politicians." The American Economic Review. Vol. 66, No. 2, pp. 1-19.
    12. MacRae, D. (1977), "A Political Model of Business Cycle." Journal of Political Economy, Vol. 85, No. 2, pp. 239-264, http://dx.doi.org/10.1086/260561 Přejít k původnímu zdroji...
    13. Nemec, J., Ochrana, F., Pavel, J., Šagát, V. (2010), Kontrola ve veřejné správě (Audit in Public Administration). Prague: Wolters Kluwer.
    14. Nordhaus, W. (1975), "The Political Business Cycle." The Review of Economic Studies, Vol. 42, No. 2, pp. 169-190, http://dx.doi.org/10.2307/2296528 Přejít k původnímu zdroji...
    15. Novotná, V., Varyšová, T. (2014), "Solving of Economic Model Using Modern Methods," in Vision 2020, ed., Sustainable Growth, Economic Development, and Global Competitiveness. Valencia: IBIMA, 2014, pp. 1811-1821.
    16. Pavel, J. (2013), Veřejné zakázky a efektivnost (Public Procurement and Efficiency). Prague: Ekopress.
    17. Persson, T., Tabellini, G. (2003), The Economic Effects of Constitutions. What Do the Data Say. Cambridge: MIT Press. Přejít k původnímu zdroji...
    18. Rogoff, K. (1990), "Equilibrium Political Budget Cycles." The American Economic Review, Vol. 80, No. 1, pp. 21-36.
    19. Rogoff, K., Sibert, A. (1988), "Elections and Macroeconomic Policy Cycles." Review of Economic Studies, Vol. 55, No. 1, pp. 1-16, http://dx.doi.org/10.2307/2297526 Přejít k původnímu zdroji...
    20. Rosenberg, J. (1992), "Rationality and Political Business Cycle: The Case of Local Government." Public Choice, Vol. 73, No. 1, pp. 71 -81, http://dx.doi.org/10.1007/BF00142917 Přejít k původnímu zdroji...
    21. Shi, M., Svensson, J. (2006), "Political Budget Cycles: Do They Differ Across Countries and Why?" Journal of Public Economics, Vol. 90, No. 8-9, pp. 1367-1389, http://dx.doi.org/10.1016/j.jpubeco.2005.09.009 Přejít k původnímu zdroji...
    22. Sedmihradská, L., Haas, J., Kubík, R. (2011), "Political Business Cycle in Czech Municipalities." Prague Economic Papers, Vol. 20, No. 1, pp. 59-70, http://dx.doi.org/10.18267/j.pep.387 Přejít k původnímu zdroji...
    23. Slaný, A., Žák, M. (1999), Hospodářská politika (Economic Policy). 1st Ed. Prague: C. H. Beck
    24. Štiková, R. (2007), "Modely Politického Cyklu a jejich Testování na Podmínkách ČR. (Political Cycle Models and Their Testing within Conditions of the Czech Republic)." Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague. IES Working Paper, No. 18/2007. I
    25. Veiga, L. G., Veiga, F. J. (2007), "Political Business Cycles at the Municipal Level. "Public Choice, Vol. 131, No. 1-2, pp. 45-64, http://dx.doi.org/10.1007/s11127-006-9104-2 Přejít k původnímu zdroji...
    26. Vlach, J., Nemec, J. (2001), Verejné obstarávanie vo väzbe na korupciu a transparentnosť. (Public Procurement in Relation to Corruption and Transparency). Bratislava: Transparency International Slovensko.
    27. Žák, M. (1998), "Politicko-ekonomický cyklus (The Political-economic Cycle)." Politická ekonomie, No. 4, pp. 471-480. Přejít k původnímu zdroji...

    Tento článek je publikován v režimu tzv. otevřeného přístupu k vědeckým informacím (Open Access), který je distribuován pod licencí Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY NC ND 4.0), která umožňuje nekomerční distribuci, reprodukci a změny, pokud je původní dílo řádně ocitováno. Není povolena distribuce, reprodukce nebo změna, která není v souladu s podmínkami této licence.


    Zpět na obsah