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%T Are there Political Budget Cycles in the Euro Area? %A Mink, Mark %A Haan, Jakob de %J European Union Politics %N 2 %P 191-211 %V 7 %D 2006 %K fiscal policy; political budget cycle; Stability and Growth Pact; %= 2011-05-04T11:57:00Z %~ http://www.peerproject.eu/ %> https://nbn-resolving.org/urn:nbn:de:0168-ssoar-228983 %X This article examines whether there is a political budget cycle (PBC) in countries in the euro area. Using a multivari ate model for 1999–2004 and various election indicators we find strong evidence that, since the start of the Stability and Growth Pact, fiscal policy-makers in the euro area have pursued expansionary policies before elections. In an election year – but not in the year prior to the election – the budget deficit increases. This result is in line with third-generation PBC models, which are based on moral hazard. We also find a significant but small partisan effect on fiscal policy outcomes. %C GBR %G en %9 journal article %W GESIS - http://www.gesis.org %~ SSOAR - http://www.ssoar.info