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

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

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.