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The Open Politiconomy: A Dynamic Analysis of Social Democratic Popularity and Economic Policies in Scandinavia

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  • MIDTBØ, TOR

Abstract

The political economy literature has not considered in detail the dynamic interrelationship between one politico-economic system and another. To fill this lacuna, the author uses a VAR model to study the relationship between social democratic popularity and the economy not only within but also between the Scandinavian countries. In addition to the expected macroeconomic interdependence, there is empirical support for the traditional partisan theory. Economic voting is found only in Denmark. Social democratic popularity is not much affected by the economy, but it is found that the economy is influenced by social democratic popularity. An increase in the popularity of the social democrats eventually causes higher inflation. In particular, the popularity of the Swedish Social Democrats creates inflationary pressure in Sweden, and this pressure is exported to Denmark and Norway as well.

Suggested Citation

  • Midtbã˜, Tor, 1998. "The Open Politiconomy: A Dynamic Analysis of Social Democratic Popularity and Economic Policies in Scandinavia," British Journal of Political Science, Cambridge University Press, vol. 28(1), pages 93-112, January.
    • Handle: RePEc:cup:bjposi:v:28:y:1998:i:01:p:93-112_00
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    Cited by:

    1. Mark Andreas Kayser, 2009. "Partisan Waves: International Business Cycles and Electoral Choice," American Journal of Political Science, John Wiley & Sons, vol. 53(4), pages 950-970, October.
    2. Troeger, Vera & Schneider, Christina J., 2012. "Strategic Budgeteering and Debt Allocation," CAGE Online Working Paper Series 85, Competitive Advantage in the Global Economy (CAGE).

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