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TitleElections and governments` behaviour - an application to Portuguese Municipalities
Author(s)Coelho, César
Keywordspolitical business cycles
political economy
government behaviour
Issue dateJul-2004
PublisherUniversidade do Minho. Núcleo de Investigação em Políticas Económicas (NIPE)
Series/Report no.Working paper series - NIPE
Abstract(s)Governments have an important role at defining the course of the economy. It is crucial, therefore, to understand their behaviour, their motivations and the factors underlying their policies, once the economy evolution can not be dissociated from the institutional and political background. This paper tests the relation between the economy and politics at the local administration level. Specifically, using a Portuguese municipalities`panel dataset, it tests opportunistics and partisan behaviour of local governments, either on instruments of local economic policy or on local economic outcomes. The main findings are: (i) local governments adopt an opportunistics behaviour, observed both on instruments and outcomes; and (ii) there is no evidence of partisan behaviour whatsoever. These results lead to important issues at light of the Stability and Growth Pact requirements.
TypeWorking paper
AccessOpen access
Appears in Collections:NIPE - Documentos de Trabalho

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