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Does stock market performance affect the government satisfaction rating in the UK?

Author

Listed:
  • Sedef Sen

    (Yildiz Technical University
    University of Oklahoma)

  • Murat Donduran

    (Yildiz Technical University)

Abstract

In this study, we attempt to answer the question of whether stock market performance affects the government satisfaction rating in the long run in a sample period spanning 1984:Q1 to 2013:Q2 in the UK. We examine both the equilibrium relationship and the causality relationship between stock market performance and government satisfaction rating. The results indicate that the voters are sensitive to the economic shocks and hold responsible for the government. The empirical results confirm the responsibility hypothesis.

Suggested Citation

  • Sedef Sen & Murat Donduran, 2017. "Does stock market performance affect the government satisfaction rating in the UK?," Empirical Economics, Springer, vol. 53(3), pages 999-1009, November.
    • Handle: RePEc:spr:empeco:v:53:y:2017:i:3:d:10.1007_s00181-016-1156-7
    DOI: 10.1007/s00181-016-1156-7
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    More about this item

    Keywords

    Stock market; Government satisfaction rating; Co-integration and asymmetric causality;
    All these keywords.

    JEL classification:

    • C18 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Methodolical Issues: General
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates

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