Are Political Budget Cycles Present in Albania?


Abstract Elections constitute the foundation of democracy. The theoretical background analyzes elections as a disciplining device. Also, many empirical studies have focused on this topic. This paper adds to this strand of literature by providing an overview of the Albanian government’s behavior before and after elections. Unlike many other studies, here the analysis is derived using monthly data. Another contribution of this study is the reference to the tax collection. The Albanian government does behave differently with respect to tax collection based on the timing of the elections. Before elections take place, its budget has lower levels of tax revenue and the deficit worsens. Finally, after elections take place, the government collects larger funds than normally.
Keywords taxes revenue, deficit, elections, time series, Albania
JEL classification C32, D72, E62, P26
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