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Partisan Views on the Economy

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  • Swank, Otto H

Abstract

In this paper it is argued that political parties may have incentives to adopt a partisan view on the working of the economic system. Our approach is based on a dynamical spatial voting model in which political parties are policy oriented. This model revolves around two interrelated issues x and y. The policy maker sets x directly. There exist two views on the relationship between x and y. Model uncertainty confronts policy makers with the problem of the selection of a model to base their actions on. We show that if voters have imperfect information about the working of the economic system that model selection contains a strategic element. Policy makers are inclined to adopt a view on the working of the economic system which fits in with their preferences. Copyright 1994 by Kluwer Academic Publishers

Suggested Citation

  • Swank, Otto H, 1994. "Partisan Views on the Economy," Public Choice, Springer, vol. 81(1-2), pages 137-150, October.
    • Handle: RePEc:kap:pubcho:v:81:y:1994:i:1-2:p:137-50
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    Cited by:

    1. Potrafke, Niklas, 2013. "Minority positions in the German Council of Economic Experts: A political economic analysis," European Journal of Political Economy, Elsevier, vol. 31(C), pages 180-187.
    2. Daniel Sutter, 1998. "Calculation of Self-Interest and Constitutional Consensus: The Role of Ideology," Constitutional Political Economy, Springer, vol. 9(4), pages 323-333, December.
    3. Swank, Otto H., 1998. "Towards an economic theory of party ideology," European Journal of Political Economy, Elsevier, vol. 14(2), pages 223-240, May.
    4. Swank, Otto H., 1998. "Partisan Policies, Macroeconomic Performance and Political Support," Journal of Macroeconomics, Elsevier, vol. 20(2), pages 367-386, April.

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