Elections, Checks and Balances, and Government Expenditures: Empirical Evidence for Japan, South Korea, and Taiwan

Ho, Yuan-Hong; Huang, Chiung-Ju
June 2012
World Academy of Science, Engineering & Technology;2012, Issue 66, p728
Academic Journal
Previous studies on political budget cycles (PBCs) implicitly assume the executive has full discretion power over fiscal policy, neglecting the role of checks and balances of the legislature. This paper goes beyond traditional PBCs models and sheds light on the case study of Japan, South Korea, and Taiwan over the 1988-2007 periods. Based on the results, we find no evidence of electoral impacts on the public expenditures in South Korean and Taiwan's congressional elections. We also noted that PBCs are found on Taiwan's government expenditures during our sample periods. Furthermore, the results also show that Japan's legislature has a significant checks and balances on government's expenditures. However, empirical results show that the legislature veto player in Taiwan neither has effect on the reduction of public expenditures, nor has the moderating effect over Taiwan's political budget cycles, albeit that they are statistically insignificant.We suggest that the existence of PBCs in Taiwan is due to a weaker systemof checks and balances. Our conjecture is that Taiwan either has no legislative veto player or has observed low compliance to the law during the time period examined in our study


Related Articles

  • Cutting Back.  // National Underwriter / Life & Health Financial Services;11/22/2010, Vol. 114 Issue 22, p34 

    The article offers information on the survey which reveals that 60% of Californian spending including credit card purchases, debt, and major purchases has been affected by the Great Recession.

  • chapter 4: Special Report.  // Indonesia Business Forecast Report;2010 1st Quarter, p33 

    The article offers information on the global fiscal spending difficulties amid the economic downturn in 2009 with regards to the fiscal performances of seven industrialized countries.

  • Government Spending and Taxation.  // Gabon Country Review;2010, p52 

    A table is presented that lists the rates of government expenditures and taxation in Gabon from 2005 to 2009.

  • Plantlife warns environment cuts will have lasting impact.  // Horticulture Week;8/20/2010, p5 

    The article offers information on the comment of Victoria Chester, chief executive of the conservative charity Plantlife, regarding the long term economic impact of the environment spending cuts in Great Britain.

  • From the editor. Fryer, Kristin // Fraser Forum;Oct2009, p1 

    The article discusses various reports published within the issue, including one by Fred McMahon on the problems associated with government spending, one by Niels Veldhuis, Charles Lammam and Milagros Palacios on the effect of government stimulus spending on the economy and Canada's economic growth.

  • China mulls big stimulus plan. Investor's Business Daily // Investors Business Daily;9/14/2015, pA02 

    The article reports on the plan of the central government of China to spend billions of funds to support the country's economy.

  • 'Tibet' able to raise only 7% of its annual budget.  // Tibetan Review: The Monthly Magazine on all Aspects of Tibet;Jan-Mar2013, Vol. 48 Issue 1-3, p7 

    The article reports on the seven percent increase in the annual budgetary demands of Tibet Autonomous Region in China, wherein they continue to depends on cash donations and failed in creating sustainable growth's foundation.

  • Outlook and Assumptions: Domestic Assumptions.  // Japan Country Monitor;Jan2012, p3 

    The article provides domestic assumptions in Japan's economy for 2012 which involve the provision of economic stimulus against deflation, the establishment of a ceiling on the strength of yen by the Bank of Japan and possible increase of government spending.

  • Curbing Federal Debt Easier with Spending Cuts, Tax Hikes.  // PA Times;Nov/Dec2011, Vol. 34 Issue 5, p12 

    The article reports on the study conducted by the Pew Fiscal Analysis Initiative, which revealed that spending reductions and tax increases are needed to control federal debt.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics