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The article analyzes the public deficits of the German Länder from 1960 to 2005, testing hypotheses related to the political economy of public debt. It finds that coalition governments tend to issue more debt than single-party governments, particularly when the finance minister is weak, while strong finance ministers mitigate this effect. Additionally, there is evidence of opportunistic behavior in fiscal discipline, with lower borrowing in pre-election years, but no significant partisan behavior observed.
- Author
- aukenovaa10
- Language
- EN