FORECASTING AUSTRALIAN ELECTIONS - 1993, AND ALL THAT

The link between economic conditions and election outcomes is a pillar of social science. Voters prefer 'better times' to worse and reward o r punish incumbents accordingly. We investigate the extent to which th is truism holds in the Australian context, with particular emphasis on the 1993 result. While Australian election outcomes are generally not well predicted by prevailing economic conditions, we are impressed by the extent to which the 1993 election outcome is at odds with the sta te of the economy. In particular, we find Labor performed up to five p ercentage points better than expected in 1993, making this result one of the most exceptional election results ever observed in Australia. T he sizeable electoral penalty typically accompanying large increases i n unemployment was effectively nullified in 1993. We accurately predic t the 1993 result (ex post) only if unemployment is considered elector ally irrelevant. We conclude by suggesting a research agenda for bette r understanding the link between economic context and election outcome s in the Australian setting.