This paper considers whether political business cycles exist in Eastern European accession countries.Section I introduces the overall objectives of the work. Section II provides a short introductionto the political business cycle literature. It also considers the role of exchange rates,...

This paper provides a theoretical model of pre-electoral budget cycle and tests its empirical implications. Whenelections approach, incumbent policy-makers have an incentive to signal their competency by acting on economicvariables. Rational voters incorporate the knowledge of such mechanisms in...