Papers in Evolutionary Economic Geography # 16.15 Liberals, Socialists, and pork-barrel politics in Greece Andrés Rodríguez-Pose, Yannis Psycharis, Vassilis Tselios http://econ.geog.uu.nl/peeg/peeg.html Liberals, Socialists, and pork-barrel politics in Greece by Andrés Rodríguez-Pose*, Yannis Psycharis** and Vassilis Tselios*** Abstract This paper analyses the role of pork-barrel politics in the allocation of public investment expenditures in Greece. It proposes a model which explicitly relates the allocation of public investment to electoral results using a unique dataset covering the period from the restoration of democracy in 1974 until 2009, just before the Great Recession that radically transformed the political panorama of the country. The analysis includes ten legislative periods marked by governments of the two parties that dominated the political arena in Greece: the Liberal and the Socialist Party. The results show that Socialist and re-elected governments applied more expansionary fiscal policies relative to Liberals. The two main parties also used different tactics when it came to pork-barrelling: while the Socialists when in government rewarded/groomed their electoral fiefs, the Liberals invested in areas controlled by the opposition to win over new votes or seats. Keywords: Public investment, pork-barrel politics, elections, regional policy, Greece JEL classification: P16, R1, R12, R42, R58, H54 Authors’ addresses: *Department of Geography and Environment **Department of Economic and Regional London School of Economics Development Houghton St Panteion University of Social and Political London WC2A 2AE, UK Sciences Tel: +44 (0)207 955 7971 136 Syngrou Avenue Fax: +44 (0)207 955 7412 176 71 Athens, Greece E-mail:
[email protected] Tel: +30 210 9201722 Fax: +30 210 9232979 E-mail:
[email protected] *** Department of Planning and Regional Development University of Thessaly Pedion Areos Volos, 383 34, Greece Tel: +30 24210 74451 Fax: +30 24210 74380 E-mail:
[email protected] 1 1.