Abstract
It is widely believed that government ideology and electoral constraints are two major factors that influence the level of public expenditures. However, Frey and Schneider argue that the effects of the two phenomena are not simultaneous. Only when a government is popular can it pursue ideological goals, and when popularity is low, energies must be redirected toward gaining support from voters to win the next election. Data draw from the Canadian provincial case are used to test empirically this hypothesis. The findings support the Frey and Schneider explanation.
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Tellier, G. Public expenditures in Canadian provinces: An empirical study of politico-economic interactions. Public Choice 126, 367–385 (2006). https://doi.org/10.1007/s11127-006-2455-x
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DOI: https://doi.org/10.1007/s11127-006-2455-x