Elections and macroeconomic policy cycles

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 proces...

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Bibliographic Details
Main Authors: Rogoff, Kenneth, Sibert, Anne
Format: Book
Published: Clevedon Society for Economic Analysis January 1988
Series:Review of Economic Studies n. 181
Subjects: