Title:
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Rational Partisan Theory with fiscal policy and an independent central bank
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Author:
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Ferré Carracedo, Montserrat; Manzano, Carolina
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Other authors:
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Universitat Rovira i Virgili. Departament d'Economia; Universitat Rovira i Virgili. Centre de Recerca en Economia Industrial i Economia Pública |
Abstract:
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The empirical evidence testing the validity of the rational partisan theory (RPT) has been mixed. In this article, we argue that the inclusion of
other macroeconomic policies and the presence of an independent central
bank can partly contribute to explain this inconclusiveness. This article
expands Alesina s (1987) RPT model to include an extra policy and an independent central bank. With these extensions, the implications of RPT
are altered signi ficantly. In particular, when the central bank is more concerned about output than public spending (an assumption made by many
papers in this literature), then the direct relationship between in flation
and output derived in Alesina (1987) never holds.
Keywords: central bank, conservativeness, political uncertainty.
JEL Classi fication: E58, E63. |
Publication date:
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2013 |
Subject (UDC):
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338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus |
Subject(s):
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Bancs centrals Política monetària Política fiscal |
Rights:
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L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by-nc-nd/3.0/es/ |
Pages:
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19 p. |
Document type:
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Working Paper |
Published by:
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Universitat Rovira i Virgili. Departament d'Economia
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Collection:
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Documents de treball del Departament d'Economia;2013-08
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