In this paper we document significantly steeper declines in nondurable expenditures in the UK compared to the US, in spite of income paths being similar. We explore several possible causes, including different employment paths, housing ownership and expenses, levels and paths of health status,...

In this paper we study whether inflation expectations react on variations of election outcome expectations. Using data from 6 countries we show that such a link in fact exists and thus provides empirical evidence supportive to rational partisan theory of business cycles.