The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Political Business Cycles

  • Allan Drazen
Reference work entry


Theoretical and empirical research on political business cycles, both opportunistic and partisan, is surveyed and discussed. The evidence for the existence of empirically significant opportunistic political business cycles is argued to be mixed.


Central bank independence Competence Imperfect information Infinite horizons Inflationary expectations Natural rate of unemployment Opportunistic vs. partisan business cycles Phillips curve Political budget cycles Political business cycles Rational expectations Rational voting Signaling 

JEL Classifications

E6 H5 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Allan Drazen
    • 1
  1. 1.