Prague Economic Papers 2008, 17(3):213-229 | DOI: 10.18267/j.pep.330

Models of political cycles: the czech experience

Radka Štiková
Institute of Economic Studies of the Charles University, Prague (radka.stikova@cnb.cz).

This paper studies whether the dynamic behaviour of real GDP, unemployment and inflation is systematically affected by the timing of elections and by changes of government in the Czech Republic. Two basic models of political cycles are tested - political business cycle models and partisan theories. Political business cycle models emphasize the opportunistic behaviour of incumbents who strive to get re-elected regardless of party affiliation. On the other hand, partisan politicians are faithful to their ideological opinions and therefore attract a specific constituency. The tests partly support the opportunistic motives for the behaviour of Czech politicians. On the contrary, suppositions of partisan motives were not proved.

Keywords: fiscal policy, political cycle, models of political business cycle, partisan theories
JEL classification: C22, E32, E61, E62

Published: January 1, 2008  Show citation

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Štiková, R. (2008). Models of political cycles: the czech experience. Prague Economic Papers, 17(3), 213-229. doi: 10.18267/j.pep.330
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