Work

Political budget cycles and effects of the excessive deficit procedure: The case of Greece

Year: 2021

Type: article

Abstract: We study the existence, magnitude, and determinants of political budget cycles in Greece over the past 40 years.We find that the Greek economy has been characterised by extensive electorally-motivated cycles, which are not typical of a developed country.However, we show that the corrective fiscal measures imposed by the European institutions in the face of the Greek debt crisis suppressed these pre-electoral fiscal policy manipulations.In particular, the imposition of the Excessive Deficit Procedure of the Stability and Growth Pact reduced the ability of domestic politicians to increase public deficits to the point where it eliminated, albeit only marginally, political budget cycles.

Source: Regional Statistics

DOI: 10.15196/rs110202

Authors: George Petrakos, Konstantinos Rontos, Chara Vavoura, Luca Salvati, Ioannis Vavouras

Institutions: Panteion University, University of the Aegean, National and Kapodistrian University of Athens, University of Macerata

Language: English

Topic: Fiscal Policies and Political Economy

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: diamond

OpenAlex ID: W4292182005

FWCI: 3.031

Cites: 45

Cited by: 19

Related to: 10