Political Instability, Uncertainty and Economics
Year: 2003
Type: article
Abstract: This paper focuses on the relationship between political instability, policy–making and macroeconomic outcomes. The theoretical section explores various models that explain the effect of instability (and political uncertainty) on growth, budget formation, inflation and monetary policy. The empirical section discusses the evidence on the predictions generated by theoretical models. Preliminary to this discussion, however, is the analysis of a few general issues concerning the specification and estimation of econometric models with political variables. Some new results are then produced on the empirical relevance of theories of strategic use of fiscal deficit.
Source: Journal of Economic Surveys
Author: Fabrizio Carmignani
Institutions: University of Milano-Bicocca, University of Glasgow
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2125311997