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@article{ Mink2006, title = {Are there Political Budget Cycles in the Euro Area?}, author = {Mink, Mark and Haan, Jakob de}, journal = {European Union Politics}, number = {2}, pages = {191-211}, volume = {7}, year = {2006}, doi = {https://doi.org/10.1177/1465116506063706}, urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-228983}, abstract = {This article examines whether there is a political budget cycle (PBC) in countries in the euro area. Using a multivari ate model for 1999–2004 and various election indicators we find strong evidence that, since the start of the Stability and Growth Pact, fiscal policy-makers in the euro area have pursued expansionary policies before elections. In an election year – but not in the year prior to the election – the budget deficit increases. This result is in line with third-generation PBC models, which are based on moral hazard. We also find a significant but small partisan effect on fiscal policy outcomes.}, }