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Political business cycles 40 years after Nordhaus

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  • Eric Dubois

    (Université de Paris 1)

Abstract

The aim of this article is to survey the huge literature that has emerged in the last four decades following Nordhaus’s (Rev Econ Stud 42(2):169–190, 1975) publication on political business cycles (PBCs). I first propose some developments in history of thought to examine the context in which this ground-breaking contribution saw the light of the day. I also present a simplified version of Nordhaus’s model to highlight his key results. I detail some early critiques of this model and the fields of investigations to which they gave birth. I then focus on the institutional context and examine its influence on PBCs, the actual research agenda. Finally, I derive some paths for future research.

Suggested Citation

  • Eric Dubois, 2016. "Political business cycles 40 years after Nordhaus," Public Choice, Springer, vol. 166(1), pages 235-259, January.
    • Handle: RePEc:kap:pubcho:v:166:y:2016:i:1:d:10.1007_s11127-016-0313-z
    DOI: 10.1007/s11127-016-0313-z
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    More about this item

    Keywords

    Political business cycles; Politico-economic cycles; Electoral cycles; Opportunistic cycles; Conditional political business cycles;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • 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
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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