Work

Transparency and Political Budget Cycles at municipal level

Year: 2013

Type: article

Abstract: We analyze the effect of municipal financial transparency on the magnitude of political budget cycles. Our sample covers the Spanish largest municipalities in the period 1999‐2009. While the impact of transparency on the electoral cycle has been studied at the international and regional level, there is no empirical evidence of its effect at the local level. Using the financial transparency index made by Transparency International Spain, we show that municipalities with lower levels of financial transparency present an electoral cycle in total spending, whereas such an electoral impact on total spending does not appear in high transparent municipalities. Furthermore, the magnitude of cycles in capital spending and taxes does not vary among low‐transparency municipalities and high‐transparency municipalities.

Source: Swiss Political Science Review

DOI: 10.1111/spsr.12036

Authors: Cristina Vicente, Bernardino Benito, Francisco Bastida

Institution: Universidad de Murcia

Language: English

Topic: Fiscal Policies and Political Economy

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Sustainable cities and communities

Open Access status: bronze

Funder: Ministerio de Ciencia e Innovación