A MODEL OF AN OPPORTUNISTIC-PARTISAN POLITICAL BUSINESS CYCLE
Article first published online: 24 MAR 2006
Scottish Journal of Political Economy
Volume 53, Issue 2, pages 242–252, May 2006
How to Cite
Sieg, G. (2006), A MODEL OF AN OPPORTUNISTIC-PARTISAN POLITICAL BUSINESS CYCLE. Scottish Journal of Political Economy, 53: 242–252. doi: 10.1111/j.1467-9485.2006.00378.x
- Issue published online: 24 MAR 2006
- Article first published online: 24 MAR 2006
- Date of receipt of final manuscript: 26 May 2005.
- Political Business Cycle;
- Macroeconomic Policy Formation;
- Economic Models of Political Processes
- E 32;
- H 10
According to political business cycle theory, separate opportunistic and partisan approaches exist. It is obvious, as seen from theoretical and empirical points of view, that politicians aim for both opportunistic as well as partisan goals. This paper presents a model of a pre-election political business cycle that manifests an indication of competence and a post-election political business cycle that occurs because of the uncertainty of an election's winner monetary policy. In the pre-election period competent governments expand the economy. The post-election cycle depends on whether a leftist or a conservative government is in power in the pre-election period, and if they are re-elected or not.