Macroeconomic Policy and Public Choice
Professor David Kiefer (auth.)Subject of this book is the intersection between political science and macroeconomics. The central idea is the existence of a political economic equilibrium in which the government acts to dampen the business cycle. The election cycle implies that this equilibrium may be a cycle rather than a point. An extension of new Keynesian theory provides a model of endogenous stabilization in which the government practices short-run stabilization policy which dampens the impact of exogenous shocks. This is a situation in which rational voters favor discretionary policy over a fixed policy rule even with rational economic agents. Special attention is given to the relevant data and to the possibilities of hypothesis testing.
Categories:
Year:
1997
Edition:
1
Publisher:
Springer-Verlag Berlin Heidelberg
Language:
english
Pages:
275
ISBN 10:
3642605648
ISBN 13:
9783642605642
File:
PDF, 15.45 MB
IPFS:
,
english, 1997