Political Business Cycles in Local Employment

Dynamic employment adjustments over business cycles

This paper uses U.S. monthly industrial production employment data between 1964 and 2000 to examine the dynamic labor adjustments of production workers and nonproduction workers in both the short and longrun. The results from the short-run analysis show that the dynamic adjustment of production workers is consistent with business cycles. However, the adjustment of nonproduction workers is relat...

Political Business Cycles and Inflation Stabilization

When the choice of the nominal anchor and timing of inflation stabilization is analyzed with models of political business cycles, there is room for political opportunism of policymakers. The different business cycles associated with exchange rate-based (ERBS) and money-based stabilizations (MBS) imply that the decision regarding the timing and nominal anchor of stabilization may be affected by ...

Searching for Opportunistic Political Business Cycles in Turkey

Political Business Cycles : Do They Exist in Croatia ? RESEARCH PAPER

The paper examines the political business cycles theory in the case of Croatia. The paper is structured in two parts: an overview of theoretical background and an empirical analysis of opportunistic political cycles in Croatia. The first part presents a detailed insight into different political business cycle models, while the second part tests econometrically whether fiscal policy cycles exist...

Political Business Cycles in the New Keynesian Model

This paper tests various political business cycle theories in a New Keynesian model with a monetary and fiscal policy mix. All the policy coefficients, the target levels of inflation and the budget deficit, the firms’ frequency of price setting, and the standard deviations of the structural shocks are allowed to depend on ‘‘political’’ regimes: a preelection versus postelection regime, a regime...