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Political cycles and international interdependence

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  • M. Menegatti

Abstract

This paper studies political cycles in a setting of international interdependence. Three main results are obtained. First in this context the political cycles caused by domestic elections are usually larger than is indicated in the previous literature. Second, political cycles can be generated by foreign elections, and cycles caused by domestic and foreign elections have opposite effects. Finally, if elections are held simultaneously at home and abroad, the amplitude of the political cycle is smaller when the same coalition wins in both countries and larger when the winning coalition is different.

Suggested Citation

  • M. Menegatti, 2002. "Political cycles and international interdependence," Economics Department Working Papers 2002-EP02, Department of Economics, Parma University (Italy).
    • Handle: RePEc:par:dipeco:2002-ep02
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    References listed on IDEAS

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    1. Alberto Alesina & Gerald D. Cohen & Nouriel Roubini, 1992. "Macroeconomic Policy And Elections In Oecd Democracies," Economics and Politics, Wiley Blackwell, vol. 4(1), pages 1-30, March.
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    3. Alberto Alesina, 1988. "Macroeconomics and Politics," NBER Chapters, in: NBER Macroeconomics Annual 1988, Volume 3, pages 13-62, National Bureau of Economic Research, Inc.
    4. Alesina, Alberto & Spear, Stephen E., 1988. "An overlapping generations model of electoral competition," Journal of Public Economics, Elsevier, vol. 37(3), pages 359-379, December.
    5. Alberto Alesina, 1987. "Macroeconomic Policy in a Two-Party System as a Repeated Game," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 102(3), pages 651-678.
    6. Alesina, Alberto & Cohen, Gerald D. & Roubini, Nouriel, 1993. "Electoral business cycle in industrial democracies," European Journal of Political Economy, Elsevier, vol. 9(1), pages 1-23, March.
    7. Lohmann, Susanne, 1993. "Electoral cycles and international policy cooperation," European Economic Review, Elsevier, vol. 37(7), pages 1373-1391, October.
    8. Alesina, Alberto, 1988. "Credibility and Policy Convergence in a Two-Party System with Rational Voters," American Economic Review, American Economic Association, vol. 78(4), pages 796-805, September.
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    More about this item

    Keywords

    Political cycles; elections; international interdependence;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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