By analyzing a large panel of elections in 55 countries, we show that political uncertainty surrounding elections can affect asymmetric cost responses to activity changes (i.e., cost stickiness). In comparison to non-election years, we find that the asymmetry in cost behaviors is stronger during...

In analyzing a large panel of elections in 56 countries for the period 1989-2012, we show that political uncertainty surrounding elections can affect asymmetric cost behaviors to activity changes (i.e., cost stickiness). The asymmetry in cost behaviors is stronger during election years than in...