Many states in India have time and again elected a multiparty or a coalition government. Research so far has shown that these differences in political cohesiveness of the ruling political entity has influenced the spending choices of the state governments. However, the evidence is not completely...

This paper provides an explanation of the reason why previous works suggest that the effect of fiscal stimulus measure is, if any, small during the lost decades in Japan. To show this, it focuses on public investment by local governments which occupies a substantial portion of the total...

We analyse how fiscal decentralization affects the volatility of government consumption extending the existing literature that mainly deals with the effects of the former on government size. Using data for 97 developed and developing countries from 1971 to 2010, we find that a higher degree of...

Balanced budget requirements lead to substantial pro-cyclicality in state government spending outside of safety-net programs. At the beginnings of recessions, states tend to experience unexpected deficits. While all states ultimately pay these deficits down, differences in the stringency of...

Many states in India have time and again elected a multiparty or a coalition government. Research so far has shown that these differences in political cohesiveness of the ruling political entity has influenced the spending choices of the state governments. However, the evidence is not completely...

The purpose of budget rules can be explored from the perspective of the expected results, obtained by their enforcement. On one hand, they are meant to improve or at least maintain certain levels of the budgetary deficit and public debt. On the other hand, they can help or limit the economic...

This paper examines how electoral motives and government ideology influence active labor market policies (ALMP). We present a model that explains how politicians strategically use ALMP to generate political cycles in unemployment and the budget deficit. Election-motivated politicians increase...

In the last 10-15 years the preoccupation concerning administrative expenses were expressed in concrete initiatives. The networks concerning Standard Costs Model (SCM) are worth mentioning for reducing administrative expenses in private business area. European Commission elaborated and is...

After a period of positive fiscal results during years 2003 to 2005, the City of Buenos Aires faces challenges in its fiscal situation as of year 2006, which surely will be reflected in exercise 2007. During the period the 2003- 2005 City accumulated positive financial results near $1,800...

This paper examines a framework in which politicians can decrease unemployment via active labor market policies (ALMP). We combine theoretical models on partisan and opportunistic cycles and assume that voters are ignorant of the necessary facts to make informed voting decisions. The model...