This paper investigates the political business cycle when interest group pressure on fiscal policy is incorporated. Two cases are investigated; one in which only autonomous investment is included and- one in which a Kaldor-type induced investment function is incorporated. In both cases chaotic fluctuations can emerge even when the politically motivated fiscal "forcing term" is fairly small.
ASJC Scopus subject areas
- Economics and Econometrics
- Organizational Behavior and Human Resource Management