Maffioletti, Anna; Santoni, Michele - In: FinanzArchiv: Public Finance Analysis 59 (2002) 3, pp. 387-387
We introduce ambiguity (Knightian uncertainty) into a stripped-down version of Alesina's (1987) partisan model of the business cycle. We show that, if the private sector's subjective expectations of future events are ambiguous, there is the possibility of a political business cycle, even when...