Election and economy in Turkey (1950-1993)

03. Summary In the democratic societies, the efforts of politic authority to win election and to direct econpmic policies for achieving its politic purpose are being called as election economy. According to the theory of political business cycles, there are two major reasons leading the election economy as follows: (the desire of ruling party to win next election and to keep its ruling position as well; (2) The develop partisan tendency to satistfy their voter's, wants and expectations in the short-run. For these reasons economic policies are being easily affected by the politic structure and politic and ecnomomic fluctuations are being a dilemma for the country. In this study whether possible effects of election economy over the Turkish economy are being investigated. The inflation, unemployment rates are low and growth rate is high in pre-election nevertheless, public expenditures and money supply are increased by the government intervention and decreasing public revenue. The other empirical findings are as follows: while inflation rate is started to increase, public expenditure are decreased dramatically and public revenues are increased after election period. VIII