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.

In this paper we study the link between elections, fiscal policy and economic growth/fluctuations. The set-up is a dynamic stochastic general equilibrium model of growth and endogenously chosen fiscal policy, in which two political parties can alternate in power. The party in office chooses...