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Behavioral and Institutional Determinants of Political Business Cycles

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Author Info
Rui Baleiras
Vasco Santos

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Abstract

The link between business cycles and the democratic politicalsystem has long been recognized by economists. However, thedeterminants of political business cycles are not well understood.We discuss several institutional and behavioral determinants ofthose cycles, such as revolving-door appointments, term limits andpreferences of the incumbent politician, electorate and businesscommunity concerning the intertemporal pattern of publicexpenditure. We show how they affect the cycle's amplitude in thecontext of a rational-expectations model. Copyright Kluwer Academic Publishers 2000

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File URL: http://hdl.handle.net/10.1023/A:1005117901380
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Publisher Info
Article provided by Springer in its journal Public Choice.

Volume (Year): 104 (2000)
Issue (Month): 1 (July)
Pages: 121-147
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Handle: RePEc:kap:pubcho:v:104:y:2000:i:1:p:121-147

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. William D. Nordhaus, 1989. "Alternative Approaches to the Political Business Cycle," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(1989-2), pages 1-68. [Downloadable!]
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  2. Kenneth Rogoff & Anne Sibert, 1988. "Elections and Macroeconomic Policy Cycles," NBER Working Papers 1838, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Alesina, Alberto & Cukierman, Alex, 1990. "The Politics of Ambiguity," The Quarterly Journal of Economics, MIT Press, vol. 105(4), pages 829-50, November. [Downloadable!] (restricted)
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  4. Tabellini, Guido & Alesina, Alberto, 1990. "Voting on the Budget Deficit," American Economic Review, American Economic Association, vol. 80(1), pages 37-49, March. [Downloadable!] (restricted)
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  5. Nuno Baleiras, Rui, 1997. "Electoral defeats and local political expenditure cycles," Economics Letters, Elsevier, vol. 56(2), pages 201-207, October. [Downloadable!] (restricted)
  6. Dick, Andrew R. & Lott, John Jr., 1993. "Reconciling voters' behavior with legislative term limits," Journal of Public Economics, Elsevier, vol. 50(1), pages 1-14, January. [Downloadable!] (restricted)
  7. Harrington Jr. , Joseph E., 1993. "The Impact of Reelection Pressures on the Fulfillment of Campaign Promises," Games and Economic Behavior, Elsevier, vol. 5(1), pages 71-97, January. [Downloadable!] (restricted)
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  1. Pedro Escudero Fernández & Diego Prior, 2002. "Endeudamiento y ciclos políticos presupuestarios: el caso de los ayuntamientos catalanes," Working Papers 200210, Department of Business Economics, Universitat Autonoma de Barcelona. [Downloadable!]
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