Economics and politics in the United States: A state-level investigation

Chun Ping Chang, Yoonbai Kim, Yung hsiang Ying*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

11 Citations (Scopus)


We examine state income and government spending data to investigate the role of political parties and elections in state business cycles of the United States, and find strong support for the partisan political business cycles, both traditional and rational versions. The growth rate of per capita real income and government spending tend to be higher (lower) with a Democratic (Republican) governor as well as a Democratic (Republican) president. In case of economic growth, we find some evidence for opportunistic cycles induced by national level politics; meanwhile, both national and state governments seem to generate expansionary policy in election years.

Original languageEnglish
Pages (from-to)343-354
Number of pages12
JournalJournal of Economic Policy Reform
Issue number4
Publication statusPublished - 2009
Externally publishedYes


  • Political business cycle
  • State level

ASJC Scopus subject areas

  • General Economics,Econometrics and Finance
  • Business and International Management


Dive into the research topics of 'Economics and politics in the United States: A state-level investigation'. Together they form a unique fingerprint.

Cite this