A Baseline Model of Behavioral Political Cycles and Macroeconomic Fluctuations

Di Guilmi, C; Galanis, G; Proaño, CR

A Baseline Model of Behavioral Political Cycles and Macroeconomic Fluctuations

Di Guilmi, C

Galanis, G Proaño, CR

Permalink

Publisher:: Elsevier
Publication Type:: Journal Article
Citation:: Journal of Economic Behavior and Organization, 2023, 213, pp. 50-67
Issue Date:: 2023-09-01

Closed Access

	Filename	Description	Size
	1-s2.0-S0167268123001932-main.pdf	Published version	3.27 MB	Adobe PDF	View/Open

Copyright Clearance Process

Recently Added
In Progress
Closed Access

This item is closed access and not available.

Full metadata record

Field	Value	Language
dc.contributor.author	Di Guilmi, C https://orcid.org/0000-0001-7786-039X
dc.contributor.author	Galanis, G
dc.contributor.author	Proaño, CR
dc.date.accessioned	2024-02-08T21:42:28Z
dc.date.available	2024-02-08T21:42:28Z
dc.date.issued	2023-09-01
dc.identifier.citation	Journal of Economic Behavior and Organization, 2023, 213, pp. 50-67
dc.identifier.issn	0167-2681
dc.identifier.uri	http://hdl.handle.net/10453/175512
dc.description.abstract	Although the rational choice approach remains the theoretical modeling paradigm in economics and political sciences, the relevance of behavioral factors such as heuristics and biases has been increasingly acknowledged in both fields over the last decades. Against this background, and in honor the lifetime work of Peter Flaschel, we set up a baseline political-macroeconomic model of the Keynes-Metzler-Goodwin (KMG) variety enhanced with endogenous political choices as in Di Guilmi and Galanis (2021). The mutual feedback between the political and the macroeconomic spheres, generated by our framework, gives rise to cyclical dynamics around moving long-term trends for certain parameter constellations. The results of both the stability analysis and the simulations illustrate the existence of multiple political equilibria in the presence of endogenous electoral presences resulting from the crucial role of income distribution not only as a determinant of aggregate investment and aggregate output, but also, of the political climate.
dc.language	en
dc.publisher	Elsevier
dc.relation.ispartof	Journal of Economic Behavior and Organization
dc.relation.isbasedon	10.1016/j.jebo.2023.05.041
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	1401 Economic Theory, 1402 Applied Economics, 1403 Econometrics
dc.subject.classification	Economics
dc.subject.classification	3502 Banking, finance and investment
dc.subject.classification	3801 Applied economics
dc.title	A Baseline Model of Behavioral Political Cycles and Macroeconomic Fluctuations
dc.type	Journal Article
utslib.citation.volume	213
utslib.for	1401 Economic Theory
utslib.for	1402 Applied Economics
utslib.for	1403 Econometrics
pubs.organisational-group	University of Technology Sydney
pubs.organisational-group	University of Technology Sydney/Faculty of Business
pubs.organisational-group	University of Technology Sydney/Faculty of Business/Economics Discipline
utslib.copyright.status	closed_access	*
dc.date.updated	2024-02-08T21:42:27Z
pubs.publication-status	Published
pubs.volume	213

Abstract:

Although the rational choice approach remains the theoretical modeling paradigm in economics and political sciences, the relevance of behavioral factors such as heuristics and biases has been increasingly acknowledged in both fields over the last decades. Against this background, and in honor the lifetime work of Peter Flaschel, we set up a baseline political-macroeconomic model of the Keynes-Metzler-Goodwin (KMG) variety enhanced with endogenous political choices as in Di Guilmi and Galanis (2021). The mutual feedback between the political and the macroeconomic spheres, generated by our framework, gives rise to cyclical dynamics around moving long-term trends for certain parameter constellations. The results of both the stability analysis and the simulations illustrate the existence of multiple political equilibria in the presence of endogenous electoral presences resulting from the crucial role of income distribution not only as a determinant of aggregate investment and aggregate output, but also, of the political climate.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/175512