Management of the expenditure public and cycles political budget: The case in the city councils of the Region West of Mexico

Abstract

This study aims to measure the influence of the political budget cycle in the composition of public expenditure of the municipalities in the western part of Mexico, specifically, if rulers used  the  expansionist  spending  policies  to try to influence the decisions of voters vote and, if so, what expenses are the preferred to try to retain power. The estimate was made using the model Arellano and Bond (1991), which proposed an estimator based on the method generalized of moments (GMM), using instrumental variables based on delays and differences of all the variables in the model. The results show that preferred by the rulers before the election expenses are increases in total spending per capita, investment spending and a contraction of current expenditure in relation to the total expenditure, limited to variables you budgetary character.