Paper Title
Business-Political Cycles In Iran
Abstract
According to the public opinions in most countries, the incumbent officials attempt to increase their chance for re-election by mobility, dynamism and flourishing the economy before the elections. This viewpoint in political terminology is called Business-political cycle. In accordance with this theory, the existence of political cycles in the economy may bring with itself Business-political cycles in the country. The present paper tries to test the hypothesis of Business-political cycles in Iran with respect to the terminology of political economy and with the use of successive data for the period 1981 - 2013. The results indicate that there is not a long-run political budget cycle in Iran�s economy, and Business-political cycles have no effect on budget deficit in the long-run.
Keywords- Business-political cycles, business cycles, Auto-regression distributed Lag