Unraveling the Relationship between Presidential Approval and the Economy - A Multi-Dimensional Semi-Parametric Approach
Empirical studies analyzing the determinants of U.S. presidential popularity have delivered quite inconclusive results concerning the role of economic variables by assuming linear relationships. We employ penalized spline smoothing in the context of semi-parametric additive mixed models and allow for flexible functional forms and thus possible non-linear effects for the economic determinants. By controlling for the well-known politically motivated covariables, we find strong evidence for non-linear and negative effects of unemployment, inflation, and government consumption on presidential approval. Additionally, we present new results in favor of non-parametric trivariate interaction effects between the macroeconomic covariables.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Allan Meltzer, "undated".
"Politics and the Fed,"
GSIA Working Papers
2010-E30, Carnegie Mellon University, Tepper School of Business.
- Michael Berlemann & Sören Enkelmann, 2012.
"The Economic Determinants of U.S. Presidential Approval -A Survey-,"
CESifo Working Paper Series
3761, CESifo Group Munich.
- Berlemann, Michael & Enkelmann, Sören, 2014. "The economic determinants of U.S. presidential approval: A survey," European Journal of Political Economy, Elsevier, vol. 36(C), pages 41-54.
- Soeren Enkelmann & Michael Berlemann, 2013. "The Economic Determinants of U.S. Presidential Approval - A Survey," Working Paper Series in Economics 272, University of Lüneburg, Institute of Economics.
- Leslie E. Papke & Jeffrey M. Wooldridge, 1993.
"Econometric Methods for Fractional Response Variables with an Application to 401(k) Plan Participation Rates,"
NBER Technical Working Papers
0147, National Bureau of Economic Research, Inc.
- Papke, Leslie E & Wooldridge, Jeffrey M, 1996. "Econometric Methods for Fractional Response Variables with an Application to 401(K) Plan Participation Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 11(6), pages 619-632, Nov.-Dec..
- Faust, Jon & Irons, John S., 1999. "Money, politics and the post-war business cycle," Journal of Monetary Economics, Elsevier, vol. 43(1), pages 61-89, February.
- Lena DrÃ¤ger & Jan-Oliver Menz & Ulrich Fritsche, 2011.
"Perceived Inflation under Loss Aversion,"
Macroeconomics and Finance Series
201105, Hamburg University, Department Wirtschaft und Politik.
- Frey, Bruno S. & Schneider, Friedrich, 1981. "Central bank behavior : A positive empirical analysis," Journal of Monetary Economics, Elsevier, vol. 7(3), pages 291-315.
- Adi Brender & Allan Drazen, 2008. "How Do Budget Deficits and Economic Growth Affect Reelection Prospects? Evidence from a Large Panel of Countries," American Economic Review, American Economic Association, vol. 98(5), pages 2203-2220, December.
- S. N. Wood, 2000. "Modelling and smoothing parameter estimation with multiple quadratic penalties," Journal of the Royal Statistical Society Series B, Royal Statistical Society, vol. 62(2), pages 413-428.
- K. Peren Arin & Michael Berlemann & Faik Koray & Torben Kuhlenkasper, 2013. "Nonlinear Growth Effects Of Taxation: A Semi‐Parametric Approach Using Average Marginal Tax Rates," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 28(5), pages 883-899, 08.
- Wong, Chi-ming & Kohn, Robert, 1996. "A Bayesian approach to additive semiparametric regression," Journal of Econometrics, Elsevier, vol. 74(2), pages 209-235, October.
- Smyth, David J & Dua, Pami & Taylor, Susan Washburn, 1994. "Voters and Macroeconomics: Are They Forward Looking or Backward Looking?," Public Choice, Springer, vol. 78(3-4), pages 283-293, March.
- Frey, Bruno S & Schneider, Friedrich, 1978. "An Empirical Study of Politico-Economic Interaction in the United States," The Review of Economics and Statistics, MIT Press, vol. 60(2), pages 174-183, May.
When requesting a correction, please mention this item's handle: RePEc:lue:wpaper:273. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Wagner)
If references are entirely missing, you can add them using this form.