Estimating the economic impact of political party competition in the 1992 British election

I explain how prices of publicly traded securities can be used to estimate the expected economic consequences of national elections. The methodology p resented here is applied to the 1992 British general election, an election lost by the Labour Party. Had the Labour Party won in 1992, short-term inte rest rates in the United Kingdom would have increased approximately one per cent, and British stock markets would have dropped approximately five perce nt and experienced a surge in volatility. These conclusions illustrate how the linkage of security price data with electoral research contributes to t he analysis of the economic consequences of government patisanship.