Political connections, elections and economical allocation
Our project will aim to understand if an influencial local politician would dare distort the local economic circuits to gain an edge in the upcoming election (one low in the polls), and we will ttempt to quantify this distortion. One of the main variables which may explain reelection probability is wether or not unemployment has reached a certain threshold. Would an outgoing candidate be capabl of pressuring local businesses (as to the unemployment situation) into postponing redundancies or even into hiring more staff, thus postponing resource reallocation bewteen companies ? Thus amplifying the resource reallocation bottleneck and the economic “destructive creation” ?
Data provided through CASD (21)
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