Suchergebnisse

Purpose – The purpose of the speech is to present the results of empirical verification of the occurrence of the political cycle in the property expenditures of cities with county rights. The timeliness of the topic and research objective undertaken is current challenges for local finance management under conditions of uncertainty, the results of national and international research to date, as well as the risks associated with various types of risk, including political risk. Research method – The realization of the objective will be based on the presentation of the most important issues of the subject literature and quantitative methods. For quantitative research, panel data analysis was used. In order to detect the existence of signs of the existence of a political cycle, a trend model of property expenditures with fixed effects was estimated (it was assumed a priori that units differ from each other). The source of the data is the budget reports published by the Ministry of Finance on the website of the Public Information Bulletin. Results – The results show that there is a political budget cycle in investment expenditures, which is strongly determined by the timing of local elections. Observations confirm that investment expenditures are strongly determined by the timing of local elections. The survey also showed an autocorrelation of property expenditures, which may indicate that the investments implemented by cities may be multi-year in nature. Originality / value / implications / recommendations – The conducted analysis may be a stimulus for further research related to the effects of the political cycle and an attempt to identify the remaining political risk factors.