Election economics in South Asia: do fiscal rules and institutional quality constrain political business cycles?

Key Points

• Political business cycles may be influenced by the strength of fiscal rules in different countries.
• Evidence from South Asia indicates that institutional quality plays a crucial role in economic stability during elections.
• Assessment of fiscal rules shows that stronger regulations can mitigate the effects of political business cycles.
• Highlighting the interplay between public finance and political cycles, the findings suggest areas for policy reform.