, political decisions are likely to produce economic policies that allow private individuals to appropriate less of the returns to … theoretical model that formally captures this idea. The model has a politico-economic equilibrium, which determines a sequence of … growth rates depending on structural parameters, political institutions and initial conditions. We then confront the model …

arrangements in a `federation' of countries. There are two levels of government: local and federal. Local policy redistributes … across individuals and affects the probability of aggregate shocks, while federal policy shares international risk. Policies … directly with individuals) with a `vertically-ordered' system like the EC (in which the federal government deals with national …

We extend the `rational-partisan' model of inflation to allow for the effects of unemployment persistence on the … dynamics of inflation. We combine this model with the `exchange-rate-regime' model of inflation and examine the experience of … the United Kingdom. Outside the fixed exchange rate regime of Bretton Woods, persistently high inflation can be attributed …

study special interest politics. Here the policy problem is multidimensional and we focus on specific political mechanisms … comparative politics, as we deal with policy choice under alternative political constitutions: we model some stylized features of …Observed fiscal policy varies greatly across time and countries. How can we explain this variation? This paper surveys …

incentive constraints on the policy-making process, such as lack of credibility, political opportunism, political ideology, and … divided government. The survey is organized in three parts. Part I deals with monetary policy in a simple Phillips curve model …, and political determinants of budget deficits. Part III studies economic growth in models with endogenous fiscal policy. …

country risk. Increased political instability increases the equilibrium loan size in the first regime and decreases it in the …This paper provides a theoretical and empirical analysis of the role played by domestic political incentives in the … regime. Hence the evidence indicates a positive effect of political instability on the demand for sovereign loans, as …

income growth, wealth inequality and political participation. We predict that developing countries will tend to overinvest in … and general education, with a superior social status attached to general. The resulting dynamic political equilibrium is …, displaying an inverted U-shape which reflects the complex interaction between economic and political forces, including aggregate …

We develop a political-economic model of aid fungibility. A donor country gives aid to a recipient government for the … benefit of a target group. However, the recipient government accepts political contributions from a lobby group not targeted … endogenously in the political equilibrium in the recipient country. We examine how the donor's behaviour affects the equilibrium …