Macroeconomic Policy and Public Choice

By David Kiefer

Book Overview

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.

• Format: Paperback
• Language: English
• ISBN: 0397505620
• ISBN13: 9783540648727
• Release Date: November 1998
• Publisher: Springer
• Length: 275 Pages
• Weight: 6.60 lbs.
• Dimensions: 0.6" x 6.1" x 9.2"