Current Expenditure Over the Term of Office: The Case of Polish Municipalities
This article sets out to examine fluctuations in municipal current expenditure over the course of the term of office. An empirical study was conducted on a sample of 2,479 Polish municipalities over the period 2008–2022. In addition to total current expenditure, the analysis also looked at its compo...
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| Main Author: | |
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| Format: | Article |
| Language: | English |
| Published: |
Polish Economic Society
2025-03-01
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| Series: | Ekonomista |
| Subjects: | |
| Online Access: | https://ekonomista.pte.pl/Current-Expenditure-Over-the-Term-of-Office-The-Case-of-Polish-Municipalities,196211,0,2.html |
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| Summary: | This article sets out to examine fluctuations in municipal current expenditure over the course of the term of office. An empirical study
was conducted on a sample of 2,479 Polish municipalities over the period 2008–2022. In addition to total current expenditure, the analysis
also looked at its components, including current expenditure on salaries and allowances, grants for current tasks, benefits for natural
persons, and current expenditure on the purchase of materials and services. To account for unobserved heterogeneity and the impact of
the business cycle, panel models with fixed effects for municipalities and electoral terms were employed. The results indicate that the
political budget cycle affects total current expenditure and is influenced by current expenditure on salaries and allowances, as well as
grants for current tasks. In addition, the magnitude of the decrease in total current expenditure in the post-election year is found to be
more pronounced in municipalities with a newly elected mayor, compared to municipalities where the incumbent mayor was re-elected. |
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| ISSN: | 0013-3205 2299-6184 |