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Presidential Approval Models Revisited: A New Perspective

23 Pages Posted: 16 Sep 2011 Last revised: 5 Jul 2017

Betul Dicle

Independent

Mehmet F. Dicle

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business

Date Written: September 15, 2011

Abstract

Use of quarterly economic data in presidential job approval models implies that polls are reactions, in part, to quarterly economic performance. Perhaps this implication is not intended but it is due to the availability of low frequency economic data. We argue that voters have a shorter reaction time and do not wait for periodic data while the economy is in motion. We suggest the use of high frequency financial variables that proxy past, present and expected economic performance. Since opinions are formed based on continuous information, we also suggest employing Geweke type instantaneous feedback as well as traditional Granger type sequential causal feedback. The results show that for presidential candidates, weekly financial risk may be just as important as quarterly GDP growth or monthly unemployment.

Keywords: Presidential job approval, economic performance, financial markets, financial risk, instantaneous feedback

JEL Classification: D72, P16

Suggested Citation

Dicle, Betul and Dicle, Mehmet F., Presidential Approval Models Revisited: A New Perspective (September 15, 2011). Available at SSRN: https://ssrn.com/abstract=1927985 or http://dx.doi.org/10.2139/ssrn.1927985

Betul Dicle

Independent ( email )

No Address Available

Mehmet F. Dicle (Contact Author)

Loyola University New Orleans - Joseph A. Butt, S.J. College of Business ( email )

6363 St. Charles Avenue
New Orleans, LA 70118
United States

HOME PAGE: http://researchforprofit.com

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