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An integrated view of electoral results and opportunistic policies
Veiga, Francisco José; Aidt, Toke S.; Veiga, Linda GonçalvesThe literature on political business cycles suggests that politicians systematically manipulate economic conditions before elections. The literature on vote and popularity functions suggests that economic conditions systematically affect election outcomes. This paper integrates these two strands of literature. We use Rogoff (1990)’s model of the rational political business cycle to derive the two-way relationship...
Election results and opportunistic policies : an integrated approach
Aidt, Toke S.; Veiga, Francisco José; Veiga, Linda GonçalvesThe authors acknowledge helpful comments from Eric Dubois, Martin Gassebner, Luís Aguiar-Conraria and participants in a session of the 2007 Silvaplana Workshop on Political Economy. ; The literature on political business cycles suggests that politicians systematically manipulate economic and fiscal conditions before elections. The literature on vote and popularity functions suggests that economic conditions sy...
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