Access

You are not currently logged in.

Access your personal account or get JSTOR access through your library or other institution:

login

Log in to your personal account or through your institution.

If You Use a Screen Reader

This content is available through Read Online (Free) program, which relies on page scans. Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.

The Price of Popularity: The Political Business Cycle Reexamined

David G. Golden and James M. Poterba
American Journal of Political Science
Vol. 24, No. 4 (Nov., 1980), pp. 696-714
DOI: 10.2307/2110954
Stable URL: http://www.jstor.org/stable/2110954
Page Count: 19
  • Read Online (Free)
  • Subscribe ($19.50)
  • Cite this Item
Since scans are not currently available to screen readers, please contact JSTOR User Support for access. We'll provide a PDF copy for your screen reader.
The Price of Popularity: The Political Business Cycle Reexamined
Preview not available

Abstract

This paper examines the validity of the political business cycle theory as a description of the macroeconomic policy process in the United States. It considers the ability of incumbent presidents to enhance their approval ratings by manipulating monetary and fiscal tools. The first section estimates the potential political gains from economic expansion and finds that the stimulus needed to produce even small popularity gains is substantial. The second section examines the extent to which government economic policy has been influenced by the political environment. Reaction functions for various policy instruments are estimated, and the results are shown to cast substantial doubt on the importance of the political business cycle hypothesis as an explanation of macroeconomic policy.

Page Thumbnails

  • Thumbnail: Page 
[696]
    [696]
  • Thumbnail: Page 
697
    697
  • Thumbnail: Page 
698
    698
  • Thumbnail: Page 
699
    699
  • Thumbnail: Page 
700
    700
  • Thumbnail: Page 
701
    701
  • Thumbnail: Page 
702
    702
  • Thumbnail: Page 
703
    703
  • Thumbnail: Page 
704
    704
  • Thumbnail: Page 
705
    705
  • Thumbnail: Page 
706
    706
  • Thumbnail: Page 
707
    707
  • Thumbnail: Page 
708
    708
  • Thumbnail: Page 
709
    709
  • Thumbnail: Page 
710
    710
  • Thumbnail: Page 
711
    711
  • Thumbnail: Page 
712
    712
  • Thumbnail: Page 
713
    713
  • Thumbnail: Page 
714
    714