IDEAS home Printed from https://ideas.repec.org/p/bol/bodewp/496.html
   My bibliography  Save this paper

A Note on Multiplicative Uncertainty and Partisan Policies

Author

Listed:
  • M. Castellani
  • A. E. Scorcu

Abstract

In this paper we consider the effects of multiplicative uncertainty about the structure of the economy in the standard partisan model. An increase in the uncertainty decreases of the inflation rate pursued by the liberal policymaker, but increases the inflation rate pursued by the conservative policymaker. For certain configurations of the parameters, an increase in the uncertainty reduces the expected loss of both parties.

Suggested Citation

  • M. Castellani & A. E. Scorcu, 2004. "A Note on Multiplicative Uncertainty and Partisan Policies," Working Papers 496, Dipartimento Scienze Economiche, Universita' di Bologna.
    • Handle: RePEc:bol:bodewp:496
    as

    Download full text from publisher

    File URL: http://amsacta.unibo.it/4798/1/496.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schultz, Christian, 2002. "Policy biases with voters' uncertainty about the economy and the government," European Economic Review, Elsevier, vol. 46(3), pages 487-506, March.
    2. Ball, Laurence & Cecchetti, Stephen G, 1991. "Wage Indexation and Discretionary Monetary Policy," American Economic Review, American Economic Association, vol. 81(5), pages 1310-1319, December.
    Full references (including those not matched with items on IDEAS)

    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. Kunal Sengupta & Amal Sanyal, 2004. "Delegation in a Cheap-Talk Game: A Voting Example," Econometric Society 2004 Far Eastern Meetings 471, Econometric Society.
    2. Christian Schultz, 2003. "Information, Polarization and Delegation in Democracy," CESifo Working Paper Series 1104, CESifo.
    3. De Schryder, Selien & Peersman, Gert & Wauters, Joris, 2020. "Wage indexation and the monetary policy regime," Journal of Macroeconomics, Elsevier, vol. 63(C).
    4. Romain Duval & Lukas Vogel, 2012. "How Do Nominal and Real Rigidities Interact? A Tale of the Second Best," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 44(7), pages 1455-1474, October.
    5. Giuseppe Diana & Pierre‐Guillaume Méon, 2008. "Monetary Policy in the Presence of Asymmetric Wage Indexation," Southern Economic Journal, John Wiley & Sons, vol. 75(1), pages 69-90, July.
    6. André Binette & Sylvain Martel, 2005. "Inflation and Relative Price Dispersion in Canada: An Empirical Assessment," Staff Working Papers 05-28, Bank of Canada.
    7. Javier Gómez & José Darío Uribe & Hernando Vargas, 2002. "The Implementation Of Inflation Targeting In Colombia," Borradores de Economia 3603, Banco de la Republica.
    8. Foerster, Manuel & Voss, Achim, 2022. "Believe me, I am ignorant, but not biased," European Economic Review, Elsevier, vol. 149(C).
    9. Arnaud Dellis, 2009. "The Salient Issue of Issue Salience," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 11(2), pages 203-231, April.
    10. Correa-Lopera, Guadalupe, 2019. "Demand of direct democracy," European Journal of Political Economy, Elsevier, vol. 60(C).
    11. Christian Schultz, 2007. "Strategic Campaigns and Redistributive Politics," Economic Journal, Royal Economic Society, vol. 117(522), pages 936-963, July.
    12. Christian Schultz & Tomas Sjöström, 2004. "Public Debt, Migration, and Shortsighted Politicians," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 6(5), pages 655-674, December.
    13. Patricia Bonini, 2004. "New Macroeconomics and Credibility Analysis," Economia, ANPEC - Associação Nacional dos Centros de Pós-Graduação em Economia [Brazilian Association of Graduate Programs in Economics], vol. 5(2), pages 341-359.
    14. Arkadiusz J. Derkacz, 2020. "Fiscal, Investment and Export Multipliers and the COVID-19 Pandemic Slowdowns Uncertainty Factor in the First Half of 2020," Risks, MDPI, vol. 8(4), pages 1-21, November.
    15. Steven Holland, 1994. "Inflation and Wage Indexation in the Postwar U.S," Macroeconomics 9402001, University Library of Munich, Germany.
    16. Esteban Jadresic, 1998. "The Macroeconomic Consequences of Wage Indexation Revisited," Working Papers Central Bank of Chile 35, Central Bank of Chile.
    17. repec:zbw:rwirep:0336 is not listed on IDEAS
    18. Grier, Kevin B. & Perry, Mark J., 1996. "Inflation, inflation uncertainty, and relative price dispersion: Evidence from bivariate GARCH-M models," Journal of Monetary Economics, Elsevier, vol. 38(2), pages 391-405, October.
    19. Eva Mörk & Mattias Nordin, 2020. "Voting, taxes, and heterogeneous preferences: Evidence from Swedish local elections," Economics and Politics, Wiley Blackwell, vol. 32(3), pages 356-380, November.
    20. Javier Gómez, "undated". "Wage Indexation, Inflation Inertia, and the Cost of Disinflation - New version," Borradores de Economia 198nv, Banco de la Republica de Colombia.
    21. Espen R. Moen & Christian Riis, 2010. "Policy Reversal," American Economic Review, American Economic Association, vol. 100(3), pages 1261-1268, June.

    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:bol:bodewp:496. 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: Dipartimento Scienze Economiche, Universita' di Bologna (email available below). General contact details of provider: https://edirc.repec.org/data/sebolit.html .

    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.