Does the UK economy grow faster under a Conservative or Labour government?

ALGARHI, Amr and TZIAMALIS, Alexander (2021). Does the UK economy grow faster under a Conservative or Labour government? Economics and Business Letters, 10 (2).

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Abstract

We use quarterly data from 1955 to 2019 to examine the performance of Conservative and Labour administrations in terms of real GDP growth in the United Kingdom. To account for fiscal lags in the legislation and implementation of new policies by each administration, we explore up to lag 8 in addition to an overlapping technique. Our main finding is that the UK economy has grown with a similar pace under both parties, however Labour governments seem to do better in tackling recessions and achieve a more consistent performance. Labour’s advantage becomes more pronounced if we discount the effect of a large external shock, the 2008 Financial Crisis.

Item Type:	Article
Identification Number:	https://doi.org/10.17811/ebl.10.2.2021.95-101
SWORD Depositor:	Symplectic Elements
Depositing User:	Symplectic Elements
Date Deposited:	14 Jan 2021 15:47
Last Modified:	29 Jun 2021 10:45
URI:	https://shura.shu.ac.uk/id/eprint/27982

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