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Political pressure and procyclical expenditure: An analysis of the expenditures of state governments in Mexico

Abbott, Andrew; Cabral Torres, René; Cabral, René; Jones, Philip; Palacios, Roberto

Authors

Andrew Abbott

René Cabral Torres

René Cabral

Philip Jones

Roberto Palacios



Abstract

© 2014 Elsevier B.V. Government expenditures are procyclical if they increase in periods of economic growth and decrease in periods of economic downturn. This paper tests the proposition that (within federations) political pressures for public expenditure increase the likelihood that expenditures and intergovernmental transfers will be procyclical. An analysis of political pressures in Mexico suggests that political pressures will produce a distinct pattern of procyclical expenditures across fiscal tiers and across government budgets. This prediction is tested with reference to the expenditures of 31 states in Mexico between 2005 and 2010.

Citation

Abbott, A., Cabral, R., Jones, P., & Palacios, R. (2015). Political pressure and procyclical expenditure: An analysis of the expenditures of state governments in Mexico. Europäische Zeitschrift für politische Ökonomie = European journal of political economy, 37, 195-206. https://doi.org/10.1016/j.ejpoleco.2014.12.001

Journal Article Type Article
Acceptance Date Dec 7, 2014
Online Publication Date Dec 13, 2014
Publication Date Mar 1, 2015
Deposit Date Oct 27, 2015
Publicly Available Date Oct 27, 2015
Journal European journal of political economy
Print ISSN 0176-2680
Publisher Elsevier
Peer Reviewed Peer Reviewed
Volume 37
Pages 195-206
DOI https://doi.org/10.1016/j.ejpoleco.2014.12.001
Keywords Business cycles, Fiscal policy, Voracity effects, Mexico, Latin-America
Public URL https://hull-repository.worktribe.com/output/380380
Publisher URL http://www.sciencedirect.com/science/article/pii/S0176268014001104
Additional Information This article is maintained by: Elsevier; Article Title: Political pressure and procyclical expenditure: An analysis of the expenditures of state governments in Mexico; Journal Title: European Journal of Political Economy; CrossRef DOI link to publisher maintained version: http://dx.doi.org/10.1016/j.ejpoleco.2014.12.001; Content Type: article; Copyright: Copyright © 2014 Elsevier B.V. All rights reserved.

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Publisher Licence URL
http://creativecommons.org/licenses/by-nc-nd/4.0/

Copyright Statement
© 2016. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/





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