*2.1.2. Institutional factors*

Institutional factors identified in the empirical study are divided into two areas: political systems and financial systems. The former is a form of political decision-making [28], such as the electoral system or the political decision-making, and the latter implies a condition that restricts the adoption of fiscal policy [28].

The influence of elections has been considered important in relation to political institutions [29–35]. Theoretically, as politicians have incentive to increase the likelihood their reelection by using more public spending and debt accumulation. In addition, this may cause financial instability when financial status is arbitrarily adjusted in a strategic act to hinder the ability of the next elected candidate to enact policy. The empirical research also examines the relationship between political change and national debt accumulation, but the results are not constant [36, 37]. Some authors point out that these inconstant results are related to the lack of control over the nature of political systems in each country [38], because the structure of decisionmaking changes the incentives of politicians [39].
