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Politico‐Economic Interactions in Australia:Some Empirical Evidence

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  • FRIEDRICH SCHNEIDER
  • WERNER W. POMMEREHNE

Abstract

A politico‐economic model for the Australian government is developed. based on some simple theoretical hypotheses concerning the interrelationship between the economy and polity. The popularity function describes the first link between the state of the economy and the voters' behaviour. It is shown that under correct specification, which includes both economic and political factors, unemployment and infldtion have a sizeable quantitative influence on government popularity. The second major link is described by the policy function. There it is shown that due to the short legislative period, the Australian government's efforts are permanently directed to securing re‐election as its most major goal.

Suggested Citation

  • Friedrich Schneider & Werner W. Pommerehne, 1980. "Politico‐Economic Interactions in Australia:Some Empirical Evidence," The Economic Record, The Economic Society of Australia, vol. 56(153), pages 113-131, June.
    • Handle: RePEc:bla:ecorec:v:56:y:1980:i:153:p:113-131
    DOI: 10.1111/j.1475-4932.1980.tb01660.x
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    References listed on IDEAS

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    1. Frey, Bruno S & Schneider, Friedrich, 1978. "An Empirical Study of Politico-Economic Interaction in the United States," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 174-183, May.
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    8. Werner W. Pommerehne & Friedrich Schneider*, 1978. "Fiscal Illusion, Political Institutions, And Local Public Spending," Kyklos, Wiley Blackwell, vol. 31(3), pages 381-408, August.
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