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Determine about the Opportunistic policy cycle

We now turn back once again to study the behaviour of the decision maker who, ultimately wants to return to the office in future. We have seen how they manipulate the policy agenda to satisfy this aspiration, in fact the whole change in policy induced by elections may be viewed as part of a democratic system, and as a normal behaviour we find that they induce certain inefficiencies in the policy process. Studies on such behaviour have been confined to two broad approaches. Models of economic cycles induced by the political cycle are called the political business cycle, which focus on the desire to win an election as determinant of policy agenda and outcomes, and the expected effects of such policies are termed as opportunistic political business cycle. In some of the studies, the term political business cycle is used to refer to opportunistic manipulation of the economy by incumbents before elections.

 

Business Law & Ethics, Finance

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