Empir Econ
DOI 10.1007/s00181-016-1156-7
Does stock market performance affect the government
satisfaction rating in the UK?
Sedef Sen
1,2
· Murat Donduran
1
Received: 21 June 2015 / Accepted: 13 July 2016
© Springer-Verlag Berlin Heidelberg 2016
Abstract In this study, we attempt to answer the question of whether stock market
performance affects the government satisfaction rating in the long run in a sample
period spanning 1984:Q1 to 2013:Q2 in the UK. We examine both the equilibrium
relationship and the causality relationship between stock market performance and
government satisfaction rating. The results indicate that the voters are sensitive to
the economic shocks and hold responsible for the government. The empirical results
confirm the responsibility hypothesis.
Keywords Stock market · Government satisfaction rating · Co-integration
and asymmetric causality
JEL Classification C18 · E31 · G12
1 Introduction
The economics and election nexus play a substantial role in the design of politicians’
own policies. Before declaring their own party programs, politicians want to know the
influence of these programs on voter behavior. Politicians who notice the sensitiveness
We are grateful to the Editor of Journal and reviewers for their substantial remarks and suggestions.
B Sedef Sen
sedefsen88@hotmail.com; sedefsen@yildiz.edu.tr
Murat Donduran
donduran@yildiz.edu.tr
1
Yildiz Technical University, Istanbul, Turkey
2
University of Oklahoma, Norman, OK, USA
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