Elections and Macroeconomic Policy Cycles

نویسندگان

  • Anne Sibert
  • KENNETH ROGOFF
  • ANNE SIBERT
چکیده

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact [email protected]. Oxford University Press and The Review of Economic Studies, Ltd. are collaborating with JSTOR to digitize, preserve and extend access to The Review of Economic Studies. There is an extensive empirical literature on political business cycles, but its theoretical foundations are grounded in pre-rational expectations macroeconomic theory. Here we show that electoral cycles in taxes, government spending and money growth can be modeled as an equilibrium signaling process. The cycle is driven by temporary information asymmetries which can arise if, for example, the government has more current information on its performance in providing for national defence. Incumbents cheat least when their private information is either extremely favourable or extremely unfavourable. An exogeneous increase in the incumbent party's popularity does not necessarily imply a damped policy cycle.

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

The Role of Financial Policies on the Selection of Commovment among Macroeconomic Variables in Business cycles Deviations under Commitment Conditions

The economic fluctuations and the changing business circles of a country play an important role in the economic performance and fate of any country, which is very important and important when considering the economic situation at a time of boom or recession under accrual conditions. In this paper, In the framework of the Ramsey model, the basis of microeconomics is extracted using neoclassical ...

متن کامل

Policy Requirements under Different Macroeconomic Conditions: An Application of Micro CPI Data

  The purpose of the paper is to answer several questions. First, if inflation, business cycles, and exchange rate changes are viewed as representative of the state of the economy, is there any evidence of the difference in the type of reaction of the economic sector to monetary and fiscal policies in different macroeconomic conditions? Second, if there is a difference in the type of economic r...

متن کامل

Political Budget Cycles In Developed and Developing Countries ∗

This paper uses a large panel data set to examine the relation between elections and fiscal policy. We find evidence of political budget cycles in both developed and developing countries: government spending increases before elections while revenues fall, leading to a larger deficit in election years. We demonstrate that political budget cycles are much larger in developing countries than in de...

متن کامل

Getting food policy on the Mayoral table: a comparison of two election cycles in New York and London.

Cities and Mayors are increasingly being recognized as important in shaping social policy and improving social well-being. And municipal food policies are increasingly important as a tool to reduce food insecurity and prevent diet-related chronic diseases. Thus city governments have a unique ability to improve local food environments. To realize this potential for improving urban food environme...

متن کامل

Monetary Integration, Partisanship, and Macroeconomic Policy

Most of the current literature on macroeconomic policies focus on cyclical phenomena such as politically induced business cycles, and how short-sighted policies can be overcome through proper institutional design. This paper instead focuses on the lasting effects of macroeconomic policies on such “real” economic variables as unemployment and distribution, and we argue that traditional distribut...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

عنوان ژورنال:

دوره   شماره 

صفحات  -

تاریخ انتشار 2007