Like other recent studies, we find a political deficit cycle in a large cross-section of countries, but show that this result is driven by the experience of "new democracies". The political budget cycle in new democracies accounts for the finding of a budget cycle in larger samples that include these countries and disappears when they are removed from the larger sample.
Political Budget Cycles in New Versus Established DemocraciesAdi Brender and Allan Drazen ,
7( 52 )
Journal of Monetary Economics