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Can Political Instability Generate Business Cycles? Evidence from the Intifada

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  • David Fielding

Abstract

This paper presents an econometric model that combines macroeconomic time series data with historical series relating to political instability in Israel during the Intifada period, in order to provide a conservative estimate of the extent to which variations in economic performance over time have a political explanation. Political instability is found to have a substantial effect on the cyclical component of aggregate output.

Suggested Citation

  • David Fielding, 2000. "Can Political Instability Generate Business Cycles? Evidence from the Intifada," Discussion Papers in Economics 00/9, Division of Economics, School of Business, University of Leicester.
    • Handle: RePEc:lec:leecon:00/9
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    File URL: https://www.le.ac.uk/economics/research/RePEc/lec/leecon/econ00-9.pdf
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    Cited by:

    1. Maddah, Majid & Ghaffari Nejad, Amir Hossein & Sargolzaei, Mostafa, 2022. "Natural resources, political competition, and economic growth: An empirical evidence from dynamic panel threshold kink analysis in Iranian provinces," Resources Policy, Elsevier, vol. 78(C).

    More about this item

    Keywords

    Israel; macroeconomics; political instability; VAR;
    All these keywords.

    JEL classification:

    • E10 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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