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Ansgar, Belke ; Niklas, Potrafke. (2009) Does Government Ideology Matter in Monetary Policy? – A Panel Data Analysis for OECD Countries.
In: Ruhr Economic Papers. RePEc:zbw:rwirep:94.
Full description at Econpapers
cites:
Heteroskedastic and autocorrelation consistent (HAC) Newey-West type standard errors. (1) (2) FGLS FGLS Ideology 0.3696*** 0.0423 [5.86] [1.29] Inflation 1.8721*** 0.5786*** [8.33] [4.10] Output gap 0.0460* 0.0456*** [1.70] [2.79] Lagged dependent variable 0.8213*** [18.68] Constant 9.9678*** 1.3992** [9.10] [2.09] Fixed Country Effects No No Fixed Period Effects Yes Yes Observations 1459 1459 Number of N 15 15 Notes: Absolute value of t statistics in brackets; * significant at 10%; ** significant at 5%; *** significant at 1% -7cause a significantly higher (trend in) inflation and a significantly lower (trend in) unemployment (Berlemann and Markwardt 2007, Drazen 2000, Gaertner 1994). The rational partisan theory (RPT), however, claims upward (downward) post-election blips in unemployment for rightwing (leftwing) regimes due to wage rigidities combined with electoral uncertainty. Following the more recent literature, we do not differentiate between PT and RPT any further.
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