The economic problems of increasing urbanisation are presently the subject of active discussion - in other industrialised and in developing countries no less than in the Federal Republic of Germany. The following article deals with the special features of the development in the Federal Republic.

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.