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Does the world economy swing national elections?

Leigh, Andrew

Description

Do voters reward national leaders who are more competent economic managers, or merely those who happen to be in power when the world economy booms? According to rational voting models, electors should parse out the state of the world economy when deciding whether to re-elect their national leader. I test this theory using data from 268 democratic elections held between 1978 and 1999, comparing the effect of world growth (“luck”) and national growth relative to world growth (“competence”). In...[Show more]

CollectionsANU Centre for Economic Policy Research (CEPR)
Type: Working/Technical Paper
URI: http://hdl.handle.net/1885/42672
Access Rights: Open Access

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