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Ideas about what is "fair" above and beyond the individual's position in the income ladder influence preferences for redistribution. We study the dynamic evolution of different economies in which redistributive policies, perceptions of fairness, inequality and growth are jointly determined. We...
Persistent link: https://www.econbiz.de/10012463062
There are two different types of media bias. One bias, which we refer to as ideology, reflects a news outlet's desire …
Persistent link: https://www.econbiz.de/10012469412
Persistent link: https://www.econbiz.de/10012458783
News consumption is moving online. If this move fundamentally changes how news is produced and consumed it will have important ramifications for politics. In this chapter we formulate a model of the supply and demand of news online that is motivated by descriptive features of online news...
Persistent link: https://www.econbiz.de/10012458987
The political left turn in Latin America, which lagged its transition to liberalized market economies by a decade or more, challenges conventional economic explanations of voting behavior. This paper generalizes the forward-looking voter model to a broad range of dynamic, non-concave income...
Persistent link: https://www.econbiz.de/10012459164
expose different areas of the polity to controlled informational treatments about the valence and ideology of the incumbent … ideology. We find that both valence and ideological messages affect the first and second moments of the belief distribution …, but only campaigning on valence brings more votes to the incumbent. With respect to ideology, cross-learning occurs, as …
Persistent link: https://www.econbiz.de/10012459676
When voters fear that politicians may have a right-wing bias or that they may be influenced or corrupted by the rich elite, signals of true left-wing conviction are valuable. As a consequence, even a moderate politician seeking reelection chooses "populist' policies - i.e., policies to the left...
Persistent link: https://www.econbiz.de/10012461351
We develop a theory of stock-market crashes based on differences of opinion among investors. Because of short …
Persistent link: https://www.econbiz.de/10012471408
This paper reviews the recent literature on monetary policy rules. We exploit the monetary policy design problem within a simple baseline theoretical framework. We then consider the implications of adding various real world complications. Among other things, we show that the optimal policy...
Persistent link: https://www.econbiz.de/10012471647
We review how realistic frictions in information and/or rationality arrest general equilibrium (GE) feedbacks. In one specification, we maintain rational expectations but remove common knowledge of aggregate shocks. In another, we replace rational expectations with Level-k Thinking or a smooth...
Persistent link: https://www.econbiz.de/10012938745