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Special interests and political business cycles

Listed author(s):
  • Bonomo, Marco Antônio Cesar
  • Terra, Maria Cristina T.

In this paper we bridge the gap between special interest politics and political business cycle literature. We build a framework where the interplay between the lobby power of special interest groups and the voting power of the majority of the population leads to political business cycles. We apply our set up to explain electoral cycles in government expenditure composition, aggregate expenditures and real exchange rates.

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File URL: http://bibliotecadigital.fgv.br/dspace/bitstream/10438/485/1/1925.pdf
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Paper provided by FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil) in its series FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) with number 597.

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Date of creation: 01 Aug 2005
Handle: RePEc:fgv:epgewp:597
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  1. Rubens Penha Cysne, 2007. "Public debt indexation and denomination, the case of Brazil: a comment," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 12(4), pages 417-425.
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  7. Marco Bonomo & Carlos Carvalho, 2010. "Imperfectly Credible Disinflation under Endogenous Time-Dependent Pricing," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(5), pages 799-831, 08.
  8. Barbosa, Fernando de Holanda, 2005. "A paridade do poder de compra: existe um quebra-cabeça?," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 582, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  9. Osmani Teixeira de Carvalho Guillén & João Victor Issler & George Athanasopoulos, 2005. "Forecasting Accuracy and Estimation Uncertainty Using VAR Models with Short- and Long-Term Economic Restrictions: A Monte-Carlo Study," Monash Econometrics and Business Statistics Working Papers 15/05, Monash University, Department of Econometrics and Business Statistics.
  10. Rubens Penha Cysne, 2005. "Equity-Premium Puzzle: Evidence From Brazilian Data," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 088, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics].
  11. Cysne, Rubens Penha, 2004. "Is there a price puzzle in Brazil? An application of Bias-Corrected Bootstrap," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 577, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  12. Lima, Luiz Renato Regis de Oliveira & Sampaio, Raquel Menezes Bezerra, 2005. "The asymmetric behavior of the U.S. public debt," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 593, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  13. Sam Peltzman, 1992. "Voters as Fiscal Conservatives," The Quarterly Journal of Economics, Oxford University Press, vol. 107(2), pages 327-361.
  14. Marco Bonomo & Cristina Terra, 2005. "Elections And Exchange Rate Policy Cycles," Economics and Politics, Wiley Blackwell, vol. 17, pages 151-176, 07.
  15. Fernando Barbosa & Alexandre Cunha & Elvia Sallum, 2006. "Competitive equilibrium hyperinflation under rational expectations," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 29(1), pages 181-195, September.
  16. Cysne, Rubens Penha, 2005. "An overview of some historical brazilian macroeconomic series and some open questions," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 592, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  17. Rojas, Gina E. Acosta & Calfat, Germán & Flôres Junior, Renato Galvão, 2005. "Trade and infrastructure: evidences from the Andean Community," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 580, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  18. Araújo, Aloísio Pessoa de & Funchal, Bruno, 2005. "Past and future of the bankruptcy law in Brazil and Latin America," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 599, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  19. Maria Cristina T. Terra & Ana Lucia Vahia de Abreu, 2004. "Purchasing Power Parity: the Choice of Price Index," Econometric Society 2004 Latin American Meetings 247, Econometric Society.
  20. repec:idb:brikps:77398 is not listed on IDEAS
  21. Fabio Araujo & Joao Victor Issler, 2005. "Estimating the Stochastic Discount Factor without a Utility Function," Computing in Economics and Finance 2005 202, Society for Computational Economics.
  22. Cysne, Rubens Penha, 2005. "What happens after the central bank of Brazil increases the target interbank rate by 1%?," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 584, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  23. Ribeiro, Edmundo Maia de Oliveira & Barbosa, Fernando de Holanda, 2005. "A demanda de reservas bancárias no Brasil," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 581, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  24. Sims, Christopher A., 2003. "Implications of rational inattention," Journal of Monetary Economics, Elsevier, vol. 50(3), pages 665-690, April.
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  26. Alesina, Alberto, 1987. "Macroeconomic Policy in a Two-party System as a Repeated Game," Scholarly Articles 4552531, Harvard University Department of Economics.
  27. Bengt Holmström, 1999. "Managerial Incentive Problems: A Dynamic Perspective," Review of Economic Studies, Oxford University Press, vol. 66(1), pages 169-182.
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  29. Ronald Kneebone & Kenneth McKenzie, 2001. "Electoral and Partisan Cycles in Fiscal Policy: An Examination of Canadian Provinces," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(5), pages 753-774, November.
  30. Ernesto H. Stein & Jorge M. Streb & Piero Ghezzi, 2005. "Real Exchange Rate Cycles Around Elections," Economics and Politics, Wiley Blackwell, vol. 17(3), pages 297-330, November.
  31. Barbosa, Fernando de Holanda, 2005. "The contagion effect of public debt on monetary policy: the brazilian experience," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 591, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  32. Torsten Persson & Guido Tabellini, 2003. "Do Electoral Cycles Differ Across Political Systems?," Working Papers 232, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
  33. Gene M. Grossman & Elhanan Helpman, 1996. "Electoral Competition and Special Interest Politics," Review of Economic Studies, Oxford University Press, vol. 63(2), pages 265-286.
  34. William D. Nordhaus, 1975. "The Political Business Cycle," Review of Economic Studies, Oxford University Press, vol. 42(2), pages 169-190.
  35. Horowitz, Andrew W. & Flôres Junior, Renato Galvão, 2004. "Beyond indifferent players: on the existence of prisoners dilemmas in games with amicable and adversarial preferences," FGV/EPGE Economics Working Papers (Ensaios Economicos da EPGE) 576, FGV/EPGE - Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
  36. Bengt Holmstrom, 1999. "Managerial Incentive Problems: A Dynamic Perspective," NBER Working Papers 6875, National Bureau of Economic Research, Inc.
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