Vote expectations and pre-electoral tariff cuts in Flemish municipalities

Using data covering 5 election moments (1976-2000) for 308 Flemish municipalities we look for evidence whether local governments reduce the tariffs of the two main local taxes before elections. Election moments are central to both the political budget cycle literature and the strategic debt models. Next to partisan motives, the political budget cycle theory refers to incumbents’ opportunistic motives: governments manipulate fiscal policy facing elections to attract voters. According to strategic debt models expenditure drift and less harsh fiscal policies might also be a means to increase the... Mehr ...