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Political Fragmentation and Changes in the Spending Composition
Uppsala University, Disciplinary Domain of Humanities and Social Sciences, Faculty of Social Sciences, Department of Economics.
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

This paper studies whether political fragmentation influence changes in the government budget composition during election years. Using data for Swedish municipalities between 1998 and 2014, different measures of fragmentation are used to analyze these effects. The results support the existence of such political budget cycles, but give no compelling evidence that these cycles are mainly driven by either less nor more fragmented governments. Furthermore, this paper analyzes if these cycles are rather driven by whether the incumbents won the previous election with a large respectively low margin as a proxy for electoral outcome uncertainty. Neither in this case, the results give any clear indication that these cycles are mostly driven by such factors.

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URN: urn:nbn:se:uu:diva-297521OAI: oai:DiVA.org:uu-297521DiVA: diva2:942214
Available from: 2016-06-23 Created: 2016-06-23 Last updated: 2016-06-23Bibliographically approved

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