The Variable Rational Partisan Business Cycle model is developed, where agents face uncertainty regarding the timing and outcome of the next election. The model predicts that partisan influences on the economy persist throughout the government's rule and are further influenced, in the opposite...

We perform convergence tests on the U.S. states for per capita income from 1930 to 2009. Crosssectional tests support overall convergence and convergence but may not hold true for the last three decades. Time series tests suggest that about half of the states exhibit stochastic convergence and...