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- W2085492808 abstract "Theoretical and empirical analyses of endogenous policy making have not addressed the implications of output or unemployment persistence. This paper investigates how political business cycles in models with nominal frictions and inflationary biases under rational expectations are affected by persistence. It turns out that even moderate degrees of persistence may turn the political business cycle upside down: Policies are expansionary as long as the election is far away and turn restrictive as the election draws close." @default.
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- W2085492808 date "1996-09-01" @default.
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- W2085492808 title "Political business cycles when real activity is persistent" @default.
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- W2085492808 doi "https://doi.org/10.1016/s0164-0704(96)80058-9" @default.
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