Local political business cycles: Evidence from Philippine municipalities
This paper establishes the existence of short-term political business cycles in the Philippines over the period 2003–2009. Examining a balanced panel of 1143 municipalities shows that employment levels increase in the two pre-electoral quarters and drop sharply in the two quarters following election...
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| Format: | Journal article |
| Language: | English |
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Elsevier
2016
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| Summary: | This paper establishes the existence of short-term political business cycles in the Philippines over the period 2003–2009. Examining a balanced panel of 1143 municipalities shows that employment levels increase in the two pre-electoral quarters and drop sharply in the two quarters following elections. Further results are consistent with the cycles being generated by incumbents' attempts to increase their chances of re-election. Cycles are stronger in sectors that incumbents are more able to influence, and when they expect stronger electoral competition. Evidence suggests that these cycles are detrimental to development. |
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