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- W1509457581 abstract "The phenomenon of manipulation of the economy by the incumbent for electoral purpose is calledPolitical Business Cycles (PBC). Using policy control economic instruments, such as fiscal and monetaryinstruments, governments may manipulate the economy to gain electoral advantage by producing growthand decreasing unemployment before elections.Earlier research on PBC in Albania found clear evidence of fiscal expansion before elections. In additionto increased income from taxes and borrowing, another source of financing the increased fiscal expansionin transition countries may be income from privatization, which is also the object of the analysis of thispaper. In our analysis we apply standard econometric approach, used widely for research related to PBC.We test if income from privatization increases before elections.We find statistically significant increase of income from privatization before general (parliamentary)elections, which may lead us to conclude that one of the reasons may be to finance increased expendituresbefore elections. Another motivation, behind this behavior of the incumbent, may be rent – seeking.These results are of particular interest, as it is for the first time that income from privatization is analyzedin conjunction with PBC." @default.
- W1509457581 created "2016-06-24" @default.
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- W1509457581 date "2011-01-01" @default.
- W1509457581 modified "2023-09-23" @default.
- W1509457581 title "Political cycles in income from privatization: The case of Albania" @default.
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