Judging government economic performance

ABSTRACT

The macroeconomic theory of judging contends that when justices on courts of last resort consider cases involving their governments and economic issues their voting behaviour will be affected by the state of the economy. Using decisions from the High Court of Australia from 1970 through 2018, the findings suggest that both economic conditions, particularly inflation and the GDP growth rate, and the partisan identity of the Commonwealth government affect the Commonwealth’s probability of winning economic cases. The High Court’s behaviour is consistent with an institution that is part of the national policymaking system and is responsive to the state of the economy.