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Political business cycles: a reviewa

Author

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  • Tânia Marta Maia Fialho

Abstract

In the last four decades, the relationship between economic performance andpolitics has been examined by means of various theoretical and empirical approaches, suggestingthe possibility of a political business cycle in many countries. This study presents areview of the main models of Business Cycle Theory and of the main findings reported inthe international literature. In part, the empirical evidence suggests that the political variable,particularly the electoral variable, is an important determinant of cyclical movements in theeconomy, indicating that Business Cycle Theory is consistent with the observed performanceof several modem democratic societies. JEL Classification: D72; D78; B21; H50.

Suggested Citation

  • Tânia Marta Maia Fialho, 1999. "Political business cycles: a reviewa," Brazilian Journal of Political Economy, Center of Political Economy, vol. 19(2), pages 381-400.
    • Handle: RePEc:ekm:repojs:v:19:y:1999:i:2:p:381-400:id:1060
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1060/1045
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    Keywords

    Political budget cycles; elections; fiscal policy; public expenditure;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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