Abstract
This paper investigates the political business cycle when interest group pressure on fiscal policy is incorporated. Two cases are investigated; one in which only autonomous investment is included and- one in which a Kaldor-type induced investment function is incorporated. In both cases chaotic fluctuations can emerge even when the politically motivated fiscal "forcing term" is fairly small.
| Original language | English |
|---|---|
| Pages (from-to) | 213-221 |
| Number of pages | 9 |
| Journal | Journal of Economic Behavior and Organization |
| Volume | 27 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1995 Jul |
| Externally published | Yes |
Keywords
- Economic chaos
- Forced oscillations
- Political business cycle
- Ueda's chaotic attractor
ASJC Scopus subject areas
- Economics and Econometrics
- Organizational Behavior and Human Resource Management