Political Business Cycle in the Czech Republic: Case of Municipalities

摘要: The study analyses expenditures of all municipalities the Czech Republic over period 2003-2013. It aims to examine whether changes in municipal spending get affected by electoral cycle. analysis has proven that are influenced political However, business cycle at level (compared macroeconomic level) its peculiarities. These arise mainly from limited options politicians use economic instruments win votes elections. To receive votes, public investments and projects so apparent they may influence voters their decision-making. Prior elections, on significantly increase for size groups. For groups 50,000 residents, however, (per capita) higher compared smaller This be explained fact these have disposable resources (higher per capita own budgetary revenues, potential acquire co-finance broader portfolio debt financing). Expenditures transfers do not change prior We interpret this finding a way prefer such investment ""visible"". Transfers used pay certain current expenses which (in accordance with established rules) apply through grants.