Jump to ContentJump to Main Navigation
Show Summary Details

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Jürges, Hendrik / Ludwig, Sandra

Ed. by Auriol , Emmanuelle / Brunner, Johann / Fleck, Robert / Mendola, Mariapia / Requate, Till / Schirle, Tammy / de Vries, Frans / Zulehner, Christine

4 Issues per year

IMPACT FACTOR 2015: 0.250
5-year IMPACT FACTOR: 0.825

SCImago Journal Rank (SJR) 2015: 0.501
Source Normalized Impact per Paper (SNIP) 2015: 0.418
Impact per Publication (IPP) 2015: 0.455

See all formats and pricing
Volume 10, Issue 1 (Jul 2010)


Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

Strategic Use of Debt in Flemish Municipalities

Stijn Goeminne
  • 1University College Ghent,
/ Carine Smolders
  • 2University College Ghent,
Published Online: 2010-07-07 | DOI: https://doi.org/10.2202/1935-1682.2097


This paper discusses the literature on strategic use of debt models and tests the seminal models of Persson & Svensson (1989) and Alesina & Tabellini (1990) on a dataset of Flemish municipalities. The literature on strategic deficit and debt behaviour originates from the question whether or not incumbent policymakers run higher budget deficits than they would if they were confident of re-election. In this paper, we introduce a vote function to estimate the probability of electoral defeat and present evidence of strategic debt in line with Persson & Svensson (1989), but only for leftist governments with expected vote percentages below 49%. There is no indication that rightist governments without re-election prospects are sensitive to strategic debt behaviour.

Keywords: strategic debt; expectation of electoral defeat; vote function; Flemish municipalities

About the article

Published Online: 2010-07-07

Citation Information: The B.E. Journal of Economic Analysis & Policy, ISSN (Online) 1935-1682, DOI: https://doi.org/10.2202/1935-1682.2097. Export Citation

Comments (0)

Please log in or register to comment.
Log in