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...

Standard zero-lower-bound New Keynesian models generate large fiscal multipliers and expansionary negative supply shocks. Thus, according to these models, a political party that implements fiscal contraction coupled with policies to increase aggregate supply should unambiguously cause economic...

This study uses data from the 2005-10 British Election Panel Study to examine the effect of media coverage on voter evaluations of the incumbent government following the 2007-8 financial crisis. By combining sentiment analysis of newspaper content with an instrumental variables approach, I show...