Strategic use of debt in Flemish municipalities
- Author
- Stijn Goeminne (UGent) and Carine Smolders (UGent)
- Organization
- Abstract
- This paper discusses the literature on strategic use of debt models and empirically tests the seminal models of Persson & Svensson (1989) and Alesina & Tabellini (1990) on a dataset of Flemish municipalities. The literature on strategic use of debt originates from the question whether incumbent policy makers increase debt if they expect an electoral defeat. We introduce a vote function to estimate the probability of electoral defeat and present evidence of strategic debt in line with Persson & Svensson (1989), but only for leftist governments expecting to be replaced.
- Keywords
- expectation of electoral defeat, strategic debt models, probability of electoral defeat, Flemish municipalities, vote function, LOCAL PUBLIC DEBT, GOVERNMENT WEAKNESS, BUDGET DEFICITS, FISCAL-POLICY, INCONSISTENCY, POPULARITY, ELECTIONS, BEHAVIOR, TAXATION, PARTIES
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Citation
Please use this url to cite or link to this publication: http://hdl.handle.net/1854/LU-781049
- MLA
- Goeminne, Stijn, and Carine Smolders. “Strategic Use of Debt in Flemish Municipalities.” B.E. Journal Of Economic Analysis & Policy 10.1 (2010): n. pag. Print.
- APA
- Goeminne, S., & Smolders, C. (2010). Strategic use of debt in Flemish municipalities. B.E. Journal Of Economic Analysis & Policy, 10(1).
- Chicago author-date
- Goeminne, Stijn, and Carine Smolders. 2010. “Strategic Use of Debt in Flemish Municipalities.” B.E. Journal Of Economic Analysis & Policy 10 (1).
- Chicago author-date (all authors)
- Goeminne, Stijn, and Carine Smolders. 2010. “Strategic Use of Debt in Flemish Municipalities.” B.E. Journal Of Economic Analysis & Policy 10 (1).
- Vancouver
- 1.Goeminne S, Smolders C. Strategic use of debt in Flemish municipalities. B.E. Journal Of Economic Analysis & Policy. Berkeley, CA: The Berkeley Electronic Press; 2010;10(1).
- IEEE
- [1]S. Goeminne and C. Smolders, “Strategic use of debt in Flemish municipalities,” B.E. Journal Of Economic Analysis & Policy, vol. 10, no. 1, 2010.
@article{781049,
abstract = {This paper discusses the literature on strategic use of debt models and empirically tests the seminal models of Persson & Svensson (1989) and Alesina & Tabellini (1990) on a dataset of Flemish municipalities. The literature on strategic use of debt originates from the question whether incumbent policy makers increase debt if they expect an electoral defeat. We introduce a vote function to estimate the probability of electoral defeat and present evidence of strategic debt in line with Persson & Svensson (1989), but only for leftist governments expecting to be replaced.},
articleno = {58},
author = {Goeminne, Stijn and Smolders, Carine},
issn = {1935-1682},
journal = {B.E. Journal Of Economic Analysis & Policy},
keywords = {expectation of electoral defeat,strategic debt models,probability of electoral defeat,Flemish municipalities,vote function,LOCAL PUBLIC DEBT,GOVERNMENT WEAKNESS,BUDGET DEFICITS,FISCAL-POLICY,INCONSISTENCY,POPULARITY,ELECTIONS,BEHAVIOR,TAXATION,PARTIES},
language = {eng},
number = {1},
pages = {29},
publisher = {The Berkeley Electronic Press},
title = {Strategic use of debt in Flemish municipalities},
volume = {10},
year = {2010},
}