Since its independence, Indonesia has experience a rapid and uneven economic growth. The financial crisis in 1998 has led Indonesia to decentralisation with a new political and government budget order in 2001. Researches found that the local government’s main expenditure are on routine...

In this paper we apply panel vector error correction model to analyze the role of debt burden and income level in determining expenditure multipliers of Indian states. Our main results based on annual data from 1990-91 to 2015-16 suggest that the size of multiplier is sensitive to expenditure...

This paper studies whether municipal expenditure in Italy is influenced by female representation in city councils. To correctly capture the causal relation we use the instrumental variable technique. Our instrument is based on a temporary change in the Italian normative occurred between 1993 and...

Does fiscal discipline restrain government from increasing its budget size? To answer this question, this paper investigates whether Wagner's law is satisfied for two types of states: U.S. states, in which fiscal sovereignty is established, and German states, in which fiscal transfer dependence...

In the last decade, Italy has experienced a considerable decentralization of functions to the regions. This transformation has been especially relevant for the National Health System that has de facto assumed a federal system design. The federal reform aimed at disciplining public health...

The empirical literature shows that incumbent politicians move expenditure from one budget item to another before elections and under different electoral systems in order to capture voter consensus and gain re-election. However, little attention has been paid to measurement of the degree of...

Using a new database of French municipalities that covers 821 towns and 2 elections (2001 and 2008), we examine how the budget structure, degree of electoral competition and the economic context affect the share of votes for the incumbent. We assess the specicities created by the two-round...

The paper presents a political agency model that observes how budgetary decisions on public good production affect the prospects of holding office for an incumbent political party. A simple budgetary function is broadened to include other expenditures such as public sector wages and social...

In order to evaluate a fiscal common-pool problem, this paper focuses on the relationship between local government council size and its expenditure. Generally, local councilors internalize the benefit of public projects targeted at their political jurisdictions, but underestimate and prefer to...

Public theatres and operas in Germany currently receive an annual funding of 2 – 2,5 billion Euros by the German Laender and municipalities. The presented monograph shows that this special kind of cultural subsidy can be traced back to the Late Middle Ages, and that theatres and operas have...