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The Effect of Unemployment, Inflation and Real Income Growth on Government Popularity in Sweden

In: Measurement in Public Choice

Author

Listed:
  • Lars Jonung

    (University of Lund)

  • Eskil Wadensjö

    (University of Lund)

Abstract

This paper investigates empirically the effects of unemployment, inflation and real income growth on the popularity of the Swedish government by testing various vote functions for the period 1967–1978. Government popularity is measured on the basis of data obtained from monthly opinion polls. The results suggest that unemployment, in particular among workers in manufacturing industry, and inflation exerted a strong influence on the popularity of the Social Democratic Party, which was the ruling party during the period 1967–1976. The effects of real income growth are considerably smaller. The estimations are sensitive to the empirical specifications of the explanatory variables, although the basic conclusions remain unchanged.

Suggested Citation

  • Lars Jonung & Eskil Wadensjö, 1981. "The Effect of Unemployment, Inflation and Real Income Growth on Government Popularity in Sweden," Palgrave Macmillan Books, in: Steinar Strøm (ed.), Measurement in Public Choice, pages 202-212, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-05090-1_14
    DOI: 10.1007/978-1-349-05090-1_14
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