Economics and politics in the United States: A state-level investigation

Chun Ping Chang; Yoonbai Kim; Yung hsiang Ying

doi:10.1080/17487870903314633

Economics and politics in the United States: A state-level investigation

Chun Ping Chang
, Yoonbai Kim
, Yung hsiang Ying

Economics

Research output: Contribution to journal › Article › peer-review

13 Scopus citations

Abstract

We examine state income and government spending data to investigate the role of political parties and elections in state business cycles of the United States, and find strong support for the partisan political business cycles, both traditional and rational versions. The growth rate of per capita real income and government spending tend to be higher (lower) with a Democratic (Republican) governor as well as a Democratic (Republican) president. In case of economic growth, we find some evidence for opportunistic cycles induced by national level politics; meanwhile, both national and state governments seem to generate expansionary policy in election years.

Original language	English
Pages (from-to)	343-354
Number of pages	12
Journal	Journal of Economic Policy Reform
Volume	12
Issue number	4
DOIs	https://doi.org/10.1080/17487870903314633
State	Published - 2009

Bibliographical note

Funding Information:
This paper is based on a chapter of Chun-Ping Chang’s PhD dissertation. Chun-Ping Chang is especially indebted to Professor Yoonbai Kim and Yung-hsiang Ying for their encouragement and advice. We would like to thank the editor, Professor Michael Connolly and anonymous reviewers for comments on the paper. The first author is also grateful to the National Science Council of Taiwan for financial support through grant NSC 97-2410-H-158-003. All remaining errors are our own.

Funding

This paper is based on a chapter of Chun-Ping Chang’s PhD dissertation. Chun-Ping Chang is especially indebted to Professor Yoonbai Kim and Yung-hsiang Ying for their encouragement and advice. We would like to thank the editor, Professor Michael Connolly and anonymous reviewers for comments on the paper. The first author is also grateful to the National Science Council of Taiwan for financial support through grant NSC 97-2410-H-158-003. All remaining errors are our own.

Funders	Funder number
National Science Council	97-2410-H-158-003

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

SDG 8 Decent Work and Economic Growth

Keywords

Political business cycle
State level

ASJC Scopus subject areas

General Economics, Econometrics and Finance
Business and International Management

Access to Document

10.1080/17487870903314633

Cite this

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title = "Economics and politics in the United States: A state-level investigation",

abstract = "We examine state income and government spending data to investigate the role of political parties and elections in state business cycles of the United States, and find strong support for the partisan political business cycles, both traditional and rational versions. The growth rate of per capita real income and government spending tend to be higher (lower) with a Democratic (Republican) governor as well as a Democratic (Republican) president. In case of economic growth, we find some evidence for opportunistic cycles induced by national level politics; meanwhile, both national and state governments seem to generate expansionary policy in election years.",

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note = "Funding Information: This paper is based on a chapter of Chun-Ping Chang{\textquoteright}s PhD dissertation. Chun-Ping Chang is especially indebted to Professor Yoonbai Kim and Yung-hsiang Ying for their encouragement and advice. We would like to thank the editor, Professor Michael Connolly and anonymous reviewers for comments on the paper. The first author is also grateful to the National Science Council of Taiwan for financial support through grant NSC 97-2410-H-158-003. All remaining errors are our own.",

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language = "English",

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pages = "343--354",

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AU - Kim, Yoonbai

AU - Ying, Yung hsiang

N1 - Funding Information: This paper is based on a chapter of Chun-Ping Chang’s PhD dissertation. Chun-Ping Chang is especially indebted to Professor Yoonbai Kim and Yung-hsiang Ying for their encouragement and advice. We would like to thank the editor, Professor Michael Connolly and anonymous reviewers for comments on the paper. The first author is also grateful to the National Science Council of Taiwan for financial support through grant NSC 97-2410-H-158-003. All remaining errors are our own.

PY - 2009

Y1 - 2009

N2 - We examine state income and government spending data to investigate the role of political parties and elections in state business cycles of the United States, and find strong support for the partisan political business cycles, both traditional and rational versions. The growth rate of per capita real income and government spending tend to be higher (lower) with a Democratic (Republican) governor as well as a Democratic (Republican) president. In case of economic growth, we find some evidence for opportunistic cycles induced by national level politics; meanwhile, both national and state governments seem to generate expansionary policy in election years.

AB - We examine state income and government spending data to investigate the role of political parties and elections in state business cycles of the United States, and find strong support for the partisan political business cycles, both traditional and rational versions. The growth rate of per capita real income and government spending tend to be higher (lower) with a Democratic (Republican) governor as well as a Democratic (Republican) president. In case of economic growth, we find some evidence for opportunistic cycles induced by national level politics; meanwhile, both national and state governments seem to generate expansionary policy in election years.

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KW - State level

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DO - 10.1080/17487870903314633

M3 - Article

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SN - 1748-7870

VL - 12

SP - 343

EP - 354

JO - Journal of Economic Policy Reform

JF - Journal of Economic Policy Reform

IS - 4

ER -

Economics and politics in the United States: A state-level investigation

Abstract

Bibliographical note

Funding

UN SDGs

Keywords

ASJC Scopus subject areas

Access to Document

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