Skip to main content

Political Business Cycles and Partisan Politics: Evidence from a Developing Economy

Buy Article:

$51.00 plus tax (Refund Policy)

Abstract:

This paper explores whether the evidence supports the Political Business Cycle (PBC) theory, Partisan Theory (PT), and Rational Partisan Theory (RPT) using stock market data from Turkey, a rapidly growing developing economy. The results indicate that the PBC hypothesis is not supported by the data. We find permanent partisan effects in the conditional variance but not in returns. The conditional volatility of the returns is higher during the periods in which a leftist party or a coalition government is in office. We also find that the stock market returns temporarily decreases (increases) at the beginning of a right‐wing (left‐wing) government, providing evidence in favor of RPT.

Document Type: Research Article

DOI: http://dx.doi.org/10.1111/j.1468-0343.2012.00397.x

Publication date: July 1, 2012

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Partial Open Access Content
Partial Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
Ingenta Connect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more