Abstract
Recently, there has been a surge of interest in partisanship theories of macroeconomic/political interaction. Unlike political business cycle theory in which economic policy is motivated only by reelection concerns, partisanship theory maintains that policy is motivated along ideological lines. Political parties differ with respect to economic policy and, consequently, economic performance may differ as well.' Indeed, not only is there evidence that political parties in the United States have quite different policy priorities, but that this difference in policy priorities is translated into differences in economic outcomes.2
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