Corruption, political instability and public finance in Europe
by Emiliano Sironi; Martina Tornari
International Journal of Monetary Economics and Finance (IJMEF), Vol. 6, No. 2/3, 2013

Abstract: This paper verifies whether corruption and political stability affect the level of public expenditure. By using data from 28 European countries over a period of five years (2005-2009) and the corruption perception index drawn from transparency international, we find that higher levels of corruption are observed in correspondence of higher political instability and that both these dimensions cooperate to increase government expenditure.

Online publication date: Sun, 15-Sep-2013

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