Business Cycles, Political Incentives and the Macroeconomy: Comparison of Models
AbstractPoliticians and political parties are faced with the problem of being elected into power, and later, of being re-elected. These political ambitions are often fuelled by policies that affect the entire economy and business cycles. The purpose of this paper is to compare the various models used to describe how political decision-making may affect business cycles. Both opportunistic and partisan models, and exchange rate manipulation are examined, and empirical evidence is used to view the validity of the models.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5527.
Date of creation: May 2007
Date of revision:
business cycles; partisan models; opportunistic models; politics;
Find related papers by JEL classification:
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-11-03 (All new papers)
- NEP-CDM-2007-11-03 (Collective Decision-Making)
- NEP-MAC-2007-11-03 (Macroeconomics)
- NEP-POL-2007-11-03 (Positive Political Economics)
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