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Does the Party in Power Matter for Economic Performance?

  • Elliott Parker

    ()

    (Department of Economics, University of Nevada, Reno)

In this brief paper, I consider whether five common political beliefs have any basis in fact. Does the economy grow faster when Republicans are in charge? Does the size of the government actually keep expanding? If so, is this growth correlated with Democrats being in charge? Does bigger government lead to slower growth? Finally, is it accurate to characterize Democrats as the “tax and spend” party? While correlation is not causation and theoretical relationships are complex, the data on U.S. economic performance during the postwar period does not appear to support any of these beliefs, and in fact tends more to support the alternative hypotheses.

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File URL: http://www.business.unr.edu/econ/wp/papers/UNRECONWP06008.pdf
File Function: First version, 2006
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Paper provided by University of Nevada, Reno, Department of Economics & University of Nevada, Reno , Department of Resource Economics in its series Working Papers with number 06-008.

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Length: 25 pages
Date of creation: Dec 2006
Date of revision:
Handle: RePEc:unr:wpaper:06-008
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  1. Robert J. Barro, 1988. "Government Spending in a Simple Model of Endogenous Growth," NBER Working Papers 2588, National Bureau of Economic Research, Inc.
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