The macroeconomic impact of radical right populist parties in government

Identifier:  imarina:9379277

Handle: https://hdl.handle.net/20.500.11797/imarina9379277

Authors:  Ferré M; Manzano C

Abstract:
The success of radical right populist parties in the last decades seems to rely on a combination of economically left-wing and culturally conservative attitudes. Moreover, many of these parties have established themselves as relevant actors in European democracies, entering government coalitions with more traditional conservative right-wing parties. Therefore, an interesting question emerges: what is the macroeconomic impact of this left-wing tendency on economic issues when these parties are in government? In this article we develop a Stackelberg game in a rational partisan theory model to study the macroeconomic effects of such coalitions on the expected values and the variability of inflation, output and government spending.