IDEAS home Printed from https://ideas.repec.org/a/kap/pubcho/v104y2000i1p121-147.html
   My bibliography  Save this article

Behavioral and Institutional Determinants of Political Business Cycles

Author

Listed:
  • Rui Baleiras
  • Vasco Santos

Abstract

The link between business cycles and the democratic politicalsystem has long been recognized by economists. However, thedeterminants of political business cycles are not well understood.We discuss several institutional and behavioral determinants ofthose cycles, such as revolving-door appointments, term limits andpreferences of the incumbent politician, electorate and businesscommunity concerning the intertemporal pattern of publicexpenditure. We show how they affect the cycle's amplitude in thecontext of a rational-expectations model. Copyright Kluwer Academic Publishers 2000

Suggested Citation

  • Rui Baleiras & Vasco Santos, 2000. "Behavioral and Institutional Determinants of Political Business Cycles," Public Choice, Springer, vol. 104(1), pages 121-147, July.
    • Handle: RePEc:kap:pubcho:v:104:y:2000:i:1:p:121-147
    DOI: 10.1023/A:1005117901380
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1023/A:1005117901380
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1023/A:1005117901380?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Alberto Alesina & Alex Cukierman, 1990. "The Politics of Ambiguity," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 105(4), pages 829-850.
    2. Tabellini, Guido & Alesina, Alberto, 1990. "Voting on the Budget Deficit," American Economic Review, American Economic Association, vol. 80(1), pages 37-49, March.
    3. Keech,William R., 1995. "Economic Politics," Cambridge Books, Cambridge University Press, number 9780521462068, September.
    4. Nuno Baleiras, Rui, 1997. "Electoral defeats and local political expenditure cycles," Economics Letters, Elsevier, vol. 56(2), pages 201-207, October.
    5. William D. Nordhaus, 1989. "Alternative Approaches to the Political Business Cycle," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(2), pages 1-68.
    6. Brennan,Geoffrey & Buchanan,James M., 2006. "The Power to Tax," Cambridge Books, Cambridge University Press, number 9780521027922, September.
    7. Patrick A. McNutt, 1996. "The Economics of Public Choice," Books, Edward Elgar Publishing, number 58.
    8. Keech,William R., 1995. "Economic Politics," Cambridge Books, Cambridge University Press, number 9780521467681, September.
    9. Ron Shachar, 1993. "Forgetfulness And The Political Cycle," Economics and Politics, Wiley Blackwell, vol. 5(1), pages 15-25, March.
    10. Kenneth Rogoff & Anne Sibert, 1988. "Elections and Macroeconomic Policy Cycles," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 55(1), pages 1-16.
    11. Kraan,Dirk-Jan, 1996. "Budgetary Decisions," Cambridge Books, Cambridge University Press, number 9780521558679, September.
    12. Gartner, Manfred, 1994. "Democracy, elections, and macroeconomic policy: Two decades of progress," European Journal of Political Economy, Elsevier, vol. 10(1), pages 85-109, May.
    13. Banks,Jeffrey S. & Hanushek,Eric Allen (ed.), 1995. "Modern Political Economy," Cambridge Books, Cambridge University Press, number 9780521478106, September.
    14. Dick, Andrew R. & Lott, John Jr., 1993. "Reconciling voters' behavior with legislative term limits," Journal of Public Economics, Elsevier, vol. 50(1), pages 1-14, January.
    15. Bruno S. Frey (ed.), 1997. "Political Business Cycles," Books, Edward Elgar Publishing, number 920.
    16. Harrington Jr. , Joseph E., 1993. "The Impact of Reelection Pressures on the Fulfillment of Campaign Promises," Games and Economic Behavior, Elsevier, vol. 5(1), pages 71-97, January.
    17. Rogoff, Kenneth, 1990. "Equilibrium Political Budget Cycles," American Economic Review, American Economic Association, vol. 80(1), pages 21-36, March.
    18. Kraan,Dirk-Jan, 1996. "Budgetary Decisions," Cambridge Books, Cambridge University Press, number 9780521418713, September.
    19. W. Robert Reed, 1994. "A Retrospective Voting Model With Heterogeneous Politicians," Economics and Politics, Wiley Blackwell, vol. 6(1), pages 39-58, March.
    20. Banks,Jeffrey S. & Hanushek,Eric Allen (ed.), 1995. "Modern Political Economy," Cambridge Books, Cambridge University Press, number 9780521472333, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ricardo Duque Gabriel, 2020. "Who should you vote for? Empirical evidence from Portuguese local governments," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 19(1), pages 5-31, January.
    2. Rui Nuno Baleiras & Jose da Silva Costa, 2001. "To be or not to be in office again, that is the question: political business cycles with local governments," Nova SBE Working Paper Series wp402, Universidade Nova de Lisboa, Nova School of Business and Economics.
    3. Rui Nuno Baleiras & Vasco Santos, 2003. "On the Likelihood and Welfare Effects of “Stop–and–go” Policies," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 5(1), pages 121-133, January.
    4. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Post-Print hal-01291401, HAL.
    5. Michelson, Noam, 2023. "The revolving door of former civil servants and firm value: A comprehensive approach," European Journal of Political Economy, Elsevier, vol. 79(C).
    6. Nie, Huihua & Jiang, Minjie & Wang, Xianghong, 2013. "The impact of political cycle: Evidence from coalmine accidents in China," Journal of Comparative Economics, Elsevier, vol. 41(4), pages 995-1011.
    7. Eric Dubois, 2016. "Political business cycles 40 years after Nordhaus," Public Choice, Springer, vol. 166(1), pages 235-259, January.
    8. Baleiras, Rui Nuno & da Silva Costa, Jose, 2004. "To be or not to be in office again: an empirical test of a local political business cycle rationale," European Journal of Political Economy, Elsevier, vol. 20(3), pages 655-671, September.
    9. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01291401, HAL.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nuno Baleiras, Rui, 1997. "Electoral defeats and local political expenditure cycles," Economics Letters, Elsevier, vol. 56(2), pages 201-207, October.
    2. Rui Nuno Baleiras & Jose da Silva Costa, 2001. "To be or not to be in office again, that is the question: political business cycles with local governments," Nova SBE Working Paper Series wp402, Universidade Nova de Lisboa, Nova School of Business and Economics.
    3. Rui Nuno Baleiras & José da Silva Costa, 2003. "To Be or Not To Be in Office Again: Political Business Cycles with Local Governments," Public Economics 0302009, University Library of Munich, Germany.
    4. Baleiras, Rui Nuno & da Silva Costa, Jose, 2004. "To be or not to be in office again: an empirical test of a local political business cycle rationale," European Journal of Political Economy, Elsevier, vol. 20(3), pages 655-671, September.
    5. Ester Silva & José Silva Costa, 2006. "Are voters rationally ignorant? An empirical study of Portuguese local elections," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 5(1), pages 31-44, May.
    6. Alberto F. Alesina & Roberto Perotti, 1999. "Budget Deficits and Budget Institutions," NBER Chapters, in: Fiscal Institutions and Fiscal Performance, pages 13-36, National Bureau of Economic Research, Inc.
    7. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01291401, HAL.
    8. Juan Carlos Berganza, 2000. "Politicians, voters and electoral processes: an overview," Investigaciones Economicas, Fundación SEPI, vol. 24(3), pages 501-543, September.
    9. Alesina, A. & Passalacqua, A., 2016. "The Political Economy of Government Debt," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 2599-2651, Elsevier.
    10. Jorge Miguel Streb, 2005. "Signaling in Political Budget Cycles: How Far Are You Willing to Go?," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 7(2), pages 229-252, May.
    11. Price, Simon, 1997. "Political Business Cycles and Macroeconomic Credibility: A Survey," Public Choice, Springer, vol. 92(3-4), pages 407-427, September.
    12. Sieg, Gernot, 1997. "A model of partisan central banks and opportunistic political business cycles," European Journal of Political Economy, Elsevier, vol. 13(3), pages 503-516, September.
    13. Eric Dubois, 2016. "Political business cycles 40 years after Nordhaus," Public Choice, Springer, vol. 166(1), pages 235-259, January.
    14. Mohammad Abdul Munim Joarder & A. K. M. Nurul Hossain & Monir Uddin Ahmed, 2016. "Does the central bank contribute to the political monetary cycles in Bangladesh?," Economic Change and Restructuring, Springer, vol. 49(4), pages 365-394, November.
    15. Vuchelen, Jef, 1995. "Political events and consumer confidence in Belgium," Journal of Economic Psychology, Elsevier, vol. 16(4), pages 563-579, December.
    16. Jorge Carrera & Pablo De la Vega & Fernando Toledo, 2021. "Income Inequality and Fiscal Policy over the Political Cycle A Panel Estimation Model for Emerging Markets and Developing Economies," Asociación Argentina de Economía Política: Working Papers 4449, Asociación Argentina de Economía Política.
    17. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Post-Print hal-01291401, HAL.
    18. Josef Brechler & Adam Geršl, 2014. "Political legislation cycle in the Czech Republic," Constitutional Political Economy, Springer, vol. 25(2), pages 137-153, June.
    19. Marco Bassetto, 2009. "The Research Agenda: Marco Bassetto on the Quantitative Evaluation of Fiscal Policy Rules," EconomicDynamics Newsletter, Review of Economic Dynamics, vol. 10(2), April.
    20. Jorge M. Streb & Daniel Lema & Gustavo Torrens, 2009. "Checks and Balances on Political Budget Cycles: Cross‐Country Evidence," Kyklos, Wiley Blackwell, vol. 62(3), pages 426-447, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:pubcho:v:104:y:2000:i:1:p:121-147. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.