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- W3123932265 abstract "The vintage political business cycle framework of Nordhaus (1975) represents the idea that the macroeconomic business cycle is manipulated opportunistically by an incumbent government to achieve re-election. A key assumption in this prototypical framework is that voters discount their memories about unemployment and inflation at a constant rate. Yet starting with Ebbinghaus (1885) and Jost (1897), a large body of research in psychology documents an empirical regularity that has come to be known as Jost's Second Law of Forgetting—individuals discount recent memories at a higher rate compared to the rate at which they discount older memories. I find that incorporating this insight from psychology (i.e., hyperbolic memory discounting) into the benchmark framework moderates the amplitude of the predicted political business cycle." @default.
- W3123932265 created "2021-02-01" @default.
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- W3123932265 date "2015-12-01" @default.
- W3123932265 modified "2023-09-28" @default.
- W3123932265 title "Hyperbolic memory discounting and the political business cycle" @default.
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- W3123932265 doi "https://doi.org/10.1016/j.ejpoleco.2015.08.002" @default.
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