The Fundamentals, the Polls, and the Presidential Vote

As the experience of 2000 shows, forecasting presidential elections is an inexact science. Everybody knows that “the economy” matters, but simple projection from economic conditions at the time of the forecast is not enough. And the most important economic shocks to the economy are the late shocks, which may arrive too late to be measured by the forecaster. Other events also impact, such as (in 2004) the Iraq war. Incorporating presidential...