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Viewing fiscal policies as the outcome of democratically resolved conflicts of households over public goods and taxes, the “economic model of politics” proposes a public choice approach, which does not rely on social welfare functions. With it, a country’s overall budget can be derived...
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try to win the election with as little concessions as possible. The efficient amount of concessions and their distribution … efficient amount of concessions depends on the closeness of the election race. The closer the initial distribution of votes, the …
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chances of re-election. Copyright Springer Science+Business Media New York 2014 …
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Given that Nordhaus' political business cycle theory is relevant at election cycle frequency and that its validity can … change over time, we consider wavelet analysis especially suited to test the theory. For the postwar U.S. economy, we exploit …
Persistent link: https://www.econbiz.de/10011260026
: maximisation of re-election chances. Though taking an opportunistic view too, we suggest a new explanation for a fiscal policy … (namely, on the part of voters) or the common objective functions (re- election chances). Being well grounded in basic … microeconomic theory (welfare maximisation by the individual agent), our model provides another foundation for the emergence of …
Persistent link: https://www.econbiz.de/10005076618
There is a wide range of theories that try to explain interactions between politics end economy that are referred as political cycles. Majority of these theories aims at analysis of changes in economic outcomes that are related to elections or other phenomena in the political reality. To induce...
Persistent link: https://www.econbiz.de/10009216655
Drawing from the personal tape recordings made during the presidency of Richard Nixon, we uncover and report in this paper new evidence that Nixon manipulated Arthur Burns and the Federal Reserve Bank into creating a political business cycle that helped secure Nixon’s reelection victory in...
Persistent link: https://www.econbiz.de/10009224831
reactions to the inflation rate and output by central banks before or after an election of the fiscal authorities in the … respective country. Important for such an investigation is not only the period before or after an election takes place but also …
Persistent link: https://www.econbiz.de/10009385739