569
Views
40
CrossRef citations to date
0
Altmetric
Original Articles

The political economy of the German Länder deficits: weak governments meet strong finance ministers

&
Pages 2399-2415 | Published online: 16 Apr 2010

References

  • Alesina , A . 1988 . Credibility and policy convergence in a two-party system with rational voters . American Economic Review , 78 : 796 – 805 .
  • Alesina , A . 1989 . Politics and business cycles in industrial economies . Economic Policy , 5 : 55 – 98 .
  • Alesina , A , Cohen , GD and Roubini , N . 1993 . Electoral business cycle in industrial democracies . Journal of Political Economy , 9 : 1 – 23 .
  • Alesina , A and Drazen , A . 1991 . Why are stabilizations delayed? . American Economic Review , 81 : 1170 – 88 .
  • Alesina , A and Perotti , R . 1994 . The political economics of budget deficits NBER Working Paper No. 4637, Cambridge
  • Alesina , A and Perotti , R . 1996 . Budget deficits and budget institutions NBER Working Paper No. 5556, Cambridge
  • Alesina , A and Sachs , J . 1988 . Political parties and the business cycle in the United States, 1948–1984 . Journal of Money, Credit and Banking , 20 : 63 – 82 .
  • Anderson , TW and Hsiao , Ch . 1982 . Formulation and estimation of dynamic models using panel data . Journal of Econometrics , 18 : 47 – 82 .
  • Andrikopoulos , A , Loizides , I and Prodromidis , K . 2006 . Taxation and political business cycles in EU economies . Applied Economics , 38 : 1761 – 74 .
  • Arellano , M and Bond , S . 1991 . Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations . Review of Economic Studies , 58 : 277 – 97 .
  • Arellano , M and Bover , O . 1995 . Another look at the instrumental variable estimation of error-components models . Journal of Econometrics , 68 : 29 – 51 .
  • Ashworth , J , Geys , B and Heyndels , B . 2005 . Government weakness and local public debt development in Flemish municipalities . International Tax and Public Finance , 12 : 395 – 422 .
  • Belke , A . 2000 . Partisan political business cycles in the German labour market? Empirical tests in the light of the Lucas-critique . Public Choice , 104 : 225 – 83 .
  • Blundell , R and Bond , S . 1998 . Initial conditions and moment restrictions in dynamic panel data models . Journal of Econometrics , 87 : 115 – 43 .
  • Boix , C . 2000 . Partisan governments, the international economy, and macroeconomic policies in advanced nations, 1960–93 . World Politics , 53 : 38 – 73 .
  • Bräuninger , Th . 2005 . A partisan model of government expenditure . Public Choice , 125 : 409 – 29 .
  • Bruno , G . 2005 . Estimation and inference in dynamic unbalanced panel data models with a small number of individuals Working Paper No. 165, Universita Commerciale Luigi Bocconi
  • Bun , MJG and Kiviet , JF . 2003 . On the diminishing returns of higher order terms in asymptotic expansions of bias . Economics Letters , 79 : 145 – 52 .
  • Carlsen , F . 1997 . Counterfiscal policies and partisan politics: evidence from industrialized countries . Applied Economics , 29 : 145 – 51 .
  • Cusack , TR . 1997 . Partisan politics and public finance: changes in public spending in the industrialized democracies, 1955–1989 . Public Choice , 91 : 375 – 95 .
  • De Haan , J and Sturm , J-E . 1997 . Political and economic determinants of OECD budget deficits and government expenditures: a reinvestigation . European Journal of Political Economy , 13 : 739 – 50 .
  • Drazen , A and Eslava , M . 2005 . Electoral manipulation via expenditure composition: theory and evidence NBER Working Paper No. 11085, Cambridge
  • Easaw , J and Garratt , D . 2000 . Elections and UK government expenditure cycles in the 1980s: an empirical analysis . Applied Economics , 32 : 381 – 91 .
  • Edin , P-A and Ohlsson , H . 1991 . Political determinants of budget deficits: coalition effects versus minority effects . European Economic Review , 35 : 1597 – 603 .
  • Forschungsgruppe Wahlen (Election Research Team) (2007) Wahlergebnisse in Deutschland 1946–2006, Mannheim.
  • Frey , BS and Schneider , F . 1979 . An econometric model with an endogenous government sector . Public Choice , 34 : 29 – 43 .
  • Galli , E and Rossi , SPS . 2002 . Political budget cycles: the case of the West German Länder . Public Choice , 110 : 283 – 303 .
  • Geys , B . 2007 . Government weakness and local public debt cycles: evidence from Flemish municipalities . Local Government Studies , 33 : 239 – 53 .
  • Hallerberg , M and von Hagen , J . 1999 . “ Electoral institutions, cabinet negotiations, and budget deficits in the European Union ” . In Fiscal Institutions and Fiscal Performance , Edited by: Porteba , JM and von Hagen , J . 209 – 32 . Chicago : The University of Chicago Press .
  • Heckelman , JC . 2002 . The econometrics of rational partisan theory . Applied Economics , 33 : 417 – 26 .
  • Heckelman , JC . 2006 . Another look at the evidence for rational partisan cycles . Public Choice , 126 : 257 – 74 .
  • Hibbs , D . 1977 . Political parties and macroeconomic policy . American Political Science Review , 71 : 1467 – 87 .
  • Hsiao , C . 1986 . Analysis of Panel Data , Cambridge : Econometric Society Monographs, Cambridge University Press .
  • Judson , RA and Owen , AL . 1997 . Estimating Dynamic Panel Data Models: A Practical Guide for Macroeconomists Vol. 3, Finance and Economics Discussion Series 1997, Federal Reserve Board of Governors, Washington, DC.
  • Judson , RA and Owen , AL . 1999 . Estimating dynamic panel data models: a guide for macroeconomists . Economics Letters , 65 : 9 – 15 .
  • Kiviet , JF . 1995 . On bias, inconsistency, and efficiency of various estimators in dynamic panel data models . Journal of Econometrics , 68 : 53 – 78 .
  • Kiviet , JF . 1999 . “ Expectation of expansions for estimators in a dynamic panel data model; some results for weakly exogenous regressors ” . In Analysis of Panels and Limited Dependent Variable Models , Edited by: Hsiao , L and Pesaran , MH . 199 – 255 . Cambridge : Cambridge University Press .
  • MacRae , CD . 1977 . A political model of the business cycle . Journal of Political Economy , 85 : 239 – 63 .
  • Nickell , StJ . 1981 . Biases in dynamic models with fixed effects . Econometrica , 49 : 1417 – 26 .
  • Nordhaus , WD . 1975 . The political business cycle . Review of Economic Studies , 42 : 169 – 90 .
  • Persson , T and Tabellini , G . 1997 . Political economics and macroeconomic policy NBER Working Paper No. 6329, Cambridge
  • Reed , WR . 2006 . Democrats, republicans, and taxes: evidence that political parties matter . Journal of Public Economics , 90 : 725 – 50 .
  • Rogoff , K and Sibert , A . 1988 . Elections and macroeconomic policy cycles . Review of Economic Studies , 55 : 1 – 16 .
  • Roubini , N and Sachs , JD . 1989 . Political and economic determinants of budget deficits in the industrial economies . European Economic Review , 33 : 903 – 38 .
  • Seitz , H . 2000 . Fiscal policy, deficits and politics of subnational governments: the case of the German Länder . Public Choice , 102 : 183 – 218 .
  • Statistisches Bundesamt (Federal Statistical Office) (2005) Fachserie 14, reihe 5, finanzen und steuern, Schulden der öffentlichen Haushalte, Wiesbaden.
  • Statistisches Bundesamt (Federal Statistical Office) (2006) Preise, verbraucherpreisindex und index der einzelhandelspreise, lange reihe ab 1948 – jahresdurchschnitte. Available at http://www.destatis.de/download/d/preis/jahrd_ab_1948.pdf (accessed 12 August 2009).
  • Tavares , J . 2004 . Does right or left matter? Cabinets, credibility and fiscal adjustments . Journal of Public Economics , 88 : 2447 – 2468 .
  • Veiga , LG and Veiga , FJ . 2007 . Political business cycles at the municipal level . Public Choice , 131 : 45 – 64 .
  • von Hagen , J . 1992 . Budgeting procedures and fiscal performance in the European Communities Economic Papers No. 96, Commission of the European Communities
  • von Hagen , J and Harden , IJ . 1995 . Budget processes and commitment to fiscal discipline . European Economic Review , 39 : 771 – 9 .
  • Wehner , J . 2009 . Cabinet structures and fiscal policy outcomes: new evidence from a global sample mimeo, London Stock Exchange, London.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.