Business-Political Cycles In Iran
According to the public opinions in most countries, the incumbent officials attempt to increase their chance for reelection
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