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We present a tractable stochastic endogenous growth model that explains how social capital influences economic development. In our model, social capital increases citizens' awareness of government activity. Hence, it alleviates the electoral incentives to under- invest in education, whose...
Persistent link: https://www.econbiz.de/10010851377
explicitly political model which emphasizes the behavior and incentives of politicians. We extend the standard voting model to …
Persistent link: https://www.econbiz.de/10010547492
Why do public-sector workers receive so much of their compensation in the form of pensions and other benefits? This paper presents a political economy model in which politicians compete for taxpayers' ’and government employees' votes by promising compensation packages, but some voters cannot...
Persistent link: https://www.econbiz.de/10010851457
to decline with public information about protection. This paper develops an electoral model with heterogeneously informed … endogenously acquires more information about his sector of employment. As a result, voters support protectionism, because they …, asymmetric information induces a universal protectionist bias. The structure of protection is Pareto inefficient, in contrast to …
Persistent link: https://www.econbiz.de/10010692002
Does additional government spending improve the electoral chances of incumbent political parties? This paper provides the first quasi-experimental evidence on this question. Our research design exploits discontinuities in federal funding to local governments in Brazil around several population...
Persistent link: https://www.econbiz.de/10010851440
This paper presents a tractable dynamic general equilibrium model that can explain cross-country empirical regularities in geographical mobility, unemployment and labor market institutions. Rational agents vote over unemployment insurance (UI), taking the dynamic distortionary effects of...
Persistent link: https://www.econbiz.de/10010547410
This paper analyzes a two-alternative voting model with the distinctive feature that voters have preferences over the … and without abstention. Finally, strategic voting (voting for the least preferred alternative) is common for a fraction of …
Persistent link: https://www.econbiz.de/10010547414
Recent studies of American politics evidence that political polarization of both the electorate and the political elite have moved "almost in tandem for the past half century" (McCarty et al., 2003, p.2), and that party polarization has steadily increased since the 1970s. On the other hand, the...
Persistent link: https://www.econbiz.de/10010547476
information about governing politicians not available from challengers. Because there are many reasons for high reelection rates …
Persistent link: https://www.econbiz.de/10011115550
, we extend the analysis to characterizing rational expectations of interim types, to games of incomplete information, as …
Persistent link: https://www.econbiz.de/10010851330