CYKL POLITYCZNY W WYDATKACH MAJĄTKOWYCH JEDNOSTEK SAMORZĄDU TERYTORIALNEGO W POLSCE
POLITICAL CYCLE IN INVESTMENT EXPENDITURES OF LOCAL GOVERNMENT UNITS IN POLAND

Summary/Abstract: Purpose – The purpose of the speech is to present the results of empirical verificationof the occurrence of the political cycle in the property expenditures of cities with countyrights. The timeliness of the topic and research objective undertaken is current challengesfor local finance management under conditions of uncertainty, the results of national andinternational 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 presentationof the most important issues of the subject literature and quantitative methods. For quan-titative research, panel data analysis was used. In order to detect the existence of signs ofthe existence of a political cycle, a trend model of property expenditures with fixed effectswas estimated (it was assumed a priori that units differ from each other). The source ofthe data is the budget reports published by the Ministry of Finance on the website of thePublic Information Bulletin.Results – The results show that there is a political budget cycle in investment expendi-tures, which is strongly determined by the timing of local elections. Observations confirmthat investment expenditures are strongly determined by the timing of local elections. Thesurvey also showed an autocorrelation of property expenditures, which may indicate thatthe investments implemented by cities may be multi-year in nature.Originality   / value   / implications   / recommendations – The conducted analysis may bea stimulus for further research related to the effects of the political cycle and an attemptto identify the remaining political risk factors.

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