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The Political Business Cycle: How Significant?

Author

Listed:
  • Stuart D. Allen

    (University of North Carolina, Greensboro)

  • Joseph M. Sulock

    (University of North Carolina, Asheville)

  • William A. Sabo

    (University of North Carolina, Asheville)

Abstract

This article provides evidence that the seasonally adjusted unemployment rate conforms to a four-year pohtical business cycle such as the one hypothesized by Nordhaus (1976) but only when the incumbent party wins the presidential election. The unemployment rate, however, is only reduced by a cumulative effect of .3 to .6 percentage points m the two years preceding a presidential victory .

Suggested Citation

  • Stuart D. Allen & Joseph M. Sulock & William A. Sabo, 1986. "The Political Business Cycle: How Significant?," Public Finance Review, , vol. 14(1), pages 107-112, January.
    • Handle: RePEc:sae:pubfin:v:14:y:1986:i:1:p:107-112
    DOI: 10.1177/109114218601400107
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    References listed on IDEAS

    as
    1. Nathaniel Beck, 1982. "Does there exist a political business cycle: A Box-Tiao analysis," Public Choice, Springer, vol. 38(2), pages 205-209, January.
    2. William D. Nordhaus, 1975. "The Political Business Cycle," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 42(2), pages 169-190.
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    Cited by:

    1. Eric Dubois, 2016. "Political business cycles 40 years after Nordhaus," Public Choice, Springer, vol. 166(1), pages 235-259, January.
    2. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-01291401, HAL.
    3. Eric Dubois, 2016. "Political Business Cycles 40 Years after Nordhaus," Post-Print hal-01291401, HAL.

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