Parties Matter in Allocating Expenditures: Evidence from Germany

Niklas Potrafke

No 652, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: I test if parties matter with respect to the allocation of public expenditures in Germany. Considering the allocation of rights and duties due to the federal structure, two econometric models are estimated. First, a SURE model analyses spending at the federal level for the period from 1950 to 2003 and finds evidence for partisan politics and election year effects. Second, I examine the spending behaviour in the states from 1974 to 2004 in a panel data framework. In comparison to the federal level, policy has weaker impacts on the allocation of expenditures in the states.

Keywords: Allocation of public expenditures; partisan politics; fiscal federalism (search for similar items in EconPapers)
JEL-codes: D72 H50 H72 (search for similar items in EconPapers)
Pages: 27 p.
Date: 2006
New Economics Papers: this item is included in nep-pbe and nep-pol
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Citations: View citations in EconPapers (6)

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