Suchergebnisse

IT IS THE INTENT OF A GROWING BODY OF WORK TO DEVELOP MACROMODELS WITH ENDOGENOUS POLITICAL SECTORS. THE INFERENCE MADE IN THIS LITERATURE IS THAT (1) THE ECONOMY CAN BE MANIPULATED OR AFFECTED BY A POLITICAL SECTOR AND THAT (2) THERE IS AN INCENTIVE FOR THE POLITICAL SECTOR TO MANIPULATE THE ECONOMY. THIS LITERATURE HAS, HOWEVER, JUST BEGUN TO FORMALIZE THE INTERACTION OF THE POLITICAL AND ECONOMIC SECTORS AND EMPIRICAL WORK IS VIRTUALLY NONEXISTENT.1 THE PURPOSE OF THIS PAPER IS TO PRESENT SOME EVIDENCE ON THESE TWO INFERENCES. IN SECTION 1 THE FIRST INFERENCE IS EXAMINED. IN SECTION II LITERATURE ON WHICH THE FIRST INFERENCE IS BASED IS REVIEWED AND EVIDENCE ON THE POSSIBLE INCENTIVE TO CREATE SUCH A CYCLE IS PRESENTED. IN SECTION III CONCLUDING REMARKS ARE OFFERED.