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4 - The Effects of Elections, Economics, and International Shocks on the Expenditure Pie

Published online by Cambridge University Press:  16 March 2023

Christine S. Lipsmeyer
Affiliation:
Texas A & M University
Andrew Q. Philips
Affiliation:
University of Colorado Boulder
Guy D. Whitten
Affiliation:
Texas A & M University
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Summary

In Chapter 4, we continue our explanation of tradeoffs between expenditure categories by focusing on how domestic and international contextual factors can constrain or facilitate government budgetary behavior. For the domestic contexts, we consider election timing, unemployment, and economic growth. In the international realm, we focus on globalization and conflict involvement. For each of these contextual factors, we develop a set of expectations about the spending tradeoffs between policy areas if left and right governments remain ideologically consistent to their preferences versus if context overwhelms those ideological concerns. Our results and conclusions are mixed across the domestic contexts. We find almost no tradeoffs and none that are consistent with either type of expectations for election timing. For an increasing unemployment, we find a mixture of ideological and strategic tradeoff decisions, while, for positive economic growth, we find substantial evidence that governments take advantage of the circumstances to go beyond their ideological priorities. Results for international contexts are also mixed with government spending allocations lacking ideological differences in the face of increased globalization. But, for increased conflict, right and left governments reallocate expenditures in similar ways – highlighting how contexts can overwhelm governments.

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Chapter
Information
The Politics of Budgets
Getting a Piece of the Pie
, pp. 115 - 157
Publisher: Cambridge University Press
Print publication year: 2023

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