Hagen, Tobias - In: Economics Bulletin 8 (2007) 8, pp. 1-5
Using an unbalanced panel of 24 OECD countries for the period 1986-2005 the paper empirically tests the political budget cycle hypothesis. The econometric approach is based on the equation proposed by BOHN (1998) for testing the sustainability of fiscal policy and system GMM estimators. The...
