EconPapers    
Economics at your fingertips  
 

Political parties and the economy: Macro convergence, micro partisanship?

Pau Castells () and Francesc Trillas ()
Additional contact information
Pau Castells: Institut d'Economia de Barcelona (IEB)
Francesc Trillas: Institut d'Economia de Barcelona (IEB); Universitat Autònoma de Barcelona (UAB)

No 2008/1, Working Papers from Institut d'Economia de Barcelona (IEB)

Abstract: In the last days of the electoral campaign for the 2004 general election in Spain, on Thursday March 11th 2004, a series of simultaneous terror attacks caused the death of 191 persons in commuting trains in the capital Madrid. Four days later, the opposition party won the election, against all predictions that were made prior to the terror attacks. This change in expectations presents a unique opportunity to take advantage of event study techniques to test some politico-economic hypotheses. The quantitative exercise is carried out employing Seemingly Unrelated Regressions (SUR). Hypothesis testing is improved by means of bootstrapping techniques. Convergence theories prove quite resilient as, jointly, quoted firms were not significantly affected by the election outcome. The results on the impact on particular companies and industries, however, suggest that a combination of capture and agency problems may play a role in explaining the effects of the change in expectations.

Keywords: Event study; median voter; agency; capture; elections (search for similar items in EconPapers)
JEL-codes: G14 G15 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2008
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://ieb.ub.edu/wp-content/uploads/2018/04/2008-IEB-WorkingPaper-01.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ieb:wpaper:doc2008-1

Access Statistics for this paper

More papers in Working Papers from Institut d'Economia de Barcelona (IEB) Contact information at EDIRC.
Bibliographic data for series maintained by ().

 
Page updated 2020-09-19
Handle: RePEc:ieb:wpaper:doc2008-1