| Abstract: |
This bachelor thesis deals with theories of political cycle, that is to say, impact of timing of elections on economic policies. Two basic models are examined - the opportunistic one and the partisan one. The opportunistic model assumes the effort of policymakers to realize such policy, which leads to their reelection to the office. Partisan models emphasize the effort of policymakers to follow their own political program. We study models with adaptive expectations, as well as models with rational expectations. At the end of the first part we present some empirical studies and current trends in research. In the second part of the thesis the existence of political cycle on selected fiscal indicators in Czech Republic is tested. We confirmed partial validity of opportunistic theories. Partisan motives were found only in very few cases. |
