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Do Large Cabinets Favor Large Governments? Evidence from Swiss Sub-Federal Jurisdictions

Schaltegger, Christoph A.; Feld, Lars P. - CESifo - 2004

The fiscal commons problem is one of the most prominent explanations of excessive spending and indebtedness in political economics. The more fragmented a government, the higher its spending, deficits and debt. In this paper we investigate to what extent this problem can be mitigated by different...

Persistent link: https://www.econbiz.de/10005094240

Political Stability and Fiscal Policy - Time Series Evidence for the Swiss Federal Level since 1849

Feld, Lars P.; Schaltegger, Christoph A. - CESifo - 2009

This paper explores the role of political stability on fiscal policy choices in a time-series ana-lysis over 158 years on the Swiss federal level. We argue that the fiscal-commons problem of public finances is affected by the time-horizon of a finance minister. Arguably, the incentives for an...

Persistent link: https://www.econbiz.de/10005034630

Liquidity Shortages and Monetary Policy

Cao, Jin; Illing, Gerhard - CESifo - 2008

pure illiquidity risk. It is shown that, when bad states are highly unlikely, public provision of liquidity may improve the … an incentive of financial intermediaries to free ride on liquidity in good states, resulting in excessively low liquidity … more liquid investment. In that case, liquidity injection will make the free riding problem even worse. The results show …

Persistent link: https://www.econbiz.de/10005766205

Financial Fragility, Bubbles and Monetary Policy

Illing, Gerhard - CESifo - 2001

prevent a run on financial intermediation by injecting liquidity when asset values fall significantly. The inflationary side … a central bank to inject liquidity in a crisis. …

Persistent link: https://www.econbiz.de/10005181425

Global Financial Transmission of Monetary Policy Shocks

Ehrmann, Michael; Fratzscher, Marcel - CESifo - 2006

The paper shows that US monetary policy has been an important determinant of global equity markets. Analysing 50 equity markets worldwide, we find that returns fall on average around 3.8% in response to a 100 basis point tightening of US monetary policy, ranging from a zero response in some to a...

Persistent link: https://www.econbiz.de/10005181586