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Political Business Cycles through Lobbying

Author

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  • Marco Bonomo

    (EPGE/FGV and CIREQ)

  • Cristina Terra

    (THEMA/Université de Cergy-Pontoise and EPGE/FGV)

Abstract

In this paper we build a framework where the interplay between the lobby power of special interest groups and the voting power of the majority of the population leads to political business cycles. We apply our set up to explain electoral cycles in government expenditure composition as well as to cycles in aggregate expenditures and in real exchange rates.

Suggested Citation

  • Marco Bonomo & Cristina Terra, 2008. "Political Business Cycles through Lobbying," THEMA Working Papers 2008-18, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2008-18
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    File URL: http://thema.u-cergy.fr/IMG/documents/2008-18.pdf
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    References listed on IDEAS

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    Cited by:

    1. Terra, Maria Cristina T., 2007. "The political economy of exchange rate in Brazil," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 656, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).

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