Political competition in a model of economic growth: Some theoretical results (*)
We analyze the role of political competition on the type of economic policies that are selected in a one sector model of economic growth. We identify conditions under which neoclassical optimal growth plans occur, and conditions in which political business cycles occur. We find that the ability commit to multi-period economic policy leads to less political stability of economic plans.
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Volume (Year): 7 (1996)
Issue (Month): 2 ()
|Note:||Received: November 2, 1994|
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