The partisan effects on the economic expectations of firms and households

The partisan effects on the economic expectations of firms and households

Period: 01.05.2010 – 30.06.2011

The ideological orientation of governments can affect the economic performance in various ways. The political-economic partisan politics literature provides lots of evidence that the ideological orientation has an effect on economic policies. Moreover, most recent findings imply that the ideological complexion of the government or changes of governments directly impact on prediction markets. Consequently, the ideological orientation of the government should have an effect on the expectations of market participants with rational expectations with respect to the future economic development. In this project it will be studied how political factors, such as the partisanship of the government or changeovers of power, affect sentiment indicators which are the mirror of the economics expectations of firms and households.

Project members

Steffen Osterloh

Steffen Osterloh

Project Coordinator

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