Forecasting Australian elections: 1993, and all that

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Abstract
The link between economic conditions and election outcomes is a pillar of social science. Voters prefer ‘better times’ to worse and reward or punish incumbents accordingly. We investigate the extent to which this 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 state of the economy. In particular, we find Labor performed up to five percentage points better than expected in 1993, making this result one of the most exceptional election results ever observed in Australia. The sizeable electoral penalty typically accompanying large increases in unemployment was effectively nullified in 1993. We accurately predict the 1993 result (ex post) only if unemployment is considered electorally irrelevant. We conclude by suggesting a research agenda for better understanding the link between economic context and election outcomes in the Australian setting.