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The public's indifference map between inflation and unemployment: Empirical evidence for the Nixon, Ford, Carter and Reagan presidencies

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  • David Smyth
  • Pami Dua

Abstract

We have succesfully estimated the public's indifference map between inflation and unemployment. The indifference curves are nonlinear and concave to the origin for most unemployment rates; the data are insufficient to permit us to be sure of the form at low unemployment rates. There is clear evidence of honeymoon and Watergate effects and a Reagan as president effect. The public dislikes expected and unexpected inflation equally. Copyright Kluwer Academic Publishers 1989

Suggested Citation

  • David Smyth & Pami Dua, 1989. "The public's indifference map between inflation and unemployment: Empirical evidence for the Nixon, Ford, Carter and Reagan presidencies," Public Choice, Springer, vol. 60(1), pages 71-85, January.
    • Handle: RePEc:kap:pubcho:v:60:y:1989:i:1:p:71-85
    DOI: 10.1007/BF00124313
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    References listed on IDEAS

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    1. repec:cup:apsrev:v:64:y:1970:i:01:p:18-34_12 is not listed on IDEAS
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    Cited by:

    1. John Golden, 1994. "Yet More on Misery: Optimization along the Short-Run Phillips Curve Revisited, a Comment on Recent Papers," The American Economist, Sage Publications, vol. 38(2), pages 92-94, October.
    2. Benny Geys & Jan Vermeir, 2008. "Taxation and presidential approval: separate effects from tax burden and tax structure turbulence?," Public Choice, Springer, vol. 135(3), pages 301-317, June.
    3. Fox, Gerald T., 2012. "Macroeconomic time consistency and wartime presidential approval," Journal of Macroeconomics, Elsevier, vol. 34(3), pages 891-902.
    4. Clark Wiseman, 1992. "More on Misery: How Consistent Are Alternative Indices? A Comment," The American Economist, Sage Publications, vol. 36(2), pages 85-88, October.
    5. Geys, Benny, 2009. "Wars, presidents and popularity: The political cost(s) of war re-examined," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2009-11, WZB Berlin Social Science Center.
    6. Geys, Benny, 2010. "War casualties and US presidential popularity: A comparison of the Korean, Vietnam and Iraq war," Discussion Papers, Research Professorship & Project "The Future of Fiscal Federalism" SP II 2010-05, WZB Berlin Social Science Center.

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