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Political Business Cycle And Economic Instability - Literature Review

Author

Listed:
  • Claudiu-Gabriel Tiganas

    (Alexandru Ioan Cuza University of Iasi, Romania)

  • Claudiu Peptine

    (Alexandru Ioan Cuza University of Iasi, Romania)

Abstract
This paper analyzes the fundamental concepts that compose the phenomenon of political business cycle and the models that have been created to support this theoretical background. A first theory on this concept is considered to be the classic perspective, which has been developed by William Nordhaus in 1975. As a result of his work, other research started to appear with multiple theories and vis ions upon this phenomenon. Through this paper we have tried to highlight the most important of these theories. For each major theory, conclusions are presented. In the end, an attempt is made to find reasoned conclusions concerning the validity of these theories to the economic environment.

Suggested Citation

  • Claudiu-Gabriel Tiganas & Claudiu Peptine, 2012. "Political Business Cycle And Economic Instability - Literature Review," CES Working Papers, Centre for European Studies, Alexandru Ioan Cuza University, vol. 4(4), pages 853-865, December.
    • Handle: RePEc:jes:wpaper:y:2012:v:4:i:4:p:853-865
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    File URL: http://ceswp.uaic.ro/articles/CESWP2012_IV4_TIG.pdf
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    References listed on IDEAS

    as
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    5. William D. Nordhaus, 1989. "Alternative Approaches to the Political Business Cycle," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 20(2), pages 1-68.
    6. Blomberg, S. Brock & Hess, Gregory D., 2003. "Is the political business cycle for real?," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 1091-1121, May.
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    Cited by:

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    2. Bystrov, Victor & Mackiewicz, Michał, 2020. "Recurrent explosive public debts and the long-run fiscal sustainability," Journal of Policy Modeling, Elsevier, vol. 42(2), pages 437-450.

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    More about this item

    Keywords

    developing countries; political business cycle; economic cycle; unemployment; inflation Romania;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles

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