Boom we win, bust they lose: analyzing the boom and bust cycle from the perspective of the political entrepreneur

Matei Alexandru Apăvăloaei
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Matei Alexandru Apăvăloaei: Bucharest University of Economic Studies, Romania

Theoretical and Applied Economics, 2015, vol. XXII, issue Special(I), 145-152

Abstract: This paper brings to the attention of the academic community a new line of research centered on the ultimate decision maker that activates in the political arena. Starting from the Catallactic split of the different functions he performs, we analyze the benefits incurred by the political entrepreneur if a Boom and Bust Cycle is set into motion. During the Boom phase, the Cantillon Effect will lead to an increase in Policy Making Rent, as well as in the Net Tax Income. During the Bust, the political entrepreneur stands to gain from an increased Legitimacy Rent and Policy Making Rent.

Keywords: political entrepreneur; boom and bust; Austrian School; Austrian Business Cycle; political economy. (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:agr:journl:v:xxii:y:2015:i:special(i):p:145-152

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