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Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes up (taxes go down) in booms and spending goes down (taxes go up) in recessions. We provide an explanation for this suboptimal fiscal policy based upon political distortions and incentives for...
Persistent link: https://www.econbiz.de/10012467077
We study the competitive equilibrium of a market for votes where voters can trade votes for a numeraire before making a decision via majority rule. The choice is binary and the number of supporters of either alternative is known. We identify a sufficient condition guaranteeing the existence of...
Persistent link: https://www.econbiz.de/10012460087
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
We study the interplay between a "one person-one vote" political system and a "one share-one vote" corporate governance regime. The political system sets Pigouvian subsidies, while corporate governance determines firm-specific public good investments. Our analysis highlights a two-way feedback...
Persistent link: https://www.econbiz.de/10014576634
Evidence on the relationship between political contributions and legislators' voting behavior is marred by concerns about endogeneity in the estimation process. Using a legislator's offspring sex mix as an exogenous variable, we employ a two-stage least squares estimation procedure to predict...
Persistent link: https://www.econbiz.de/10012464704
corruption, which is more widespread in poor countries, reduces more the electoral appeal of capitalism than that of socialism …. The empirical pattern of beliefs within countries is consistent with this explanation: people who perceive corruption to … government in economic matters). Finally, we present a model explaining the corruption-left connection. It exploits the fact that …
Persistent link: https://www.econbiz.de/10012465489
Indonesia has a tradition of corruption among local officials who harass and collect bribes from firms. Corruption … corruption and whether specific local politics, over and above the effects of local culture, affect corruption. We have a firm … responsibilities to local democratically elected governments. We have a second data set for 2004 on corruption at the end of the first …
Persistent link: https://www.econbiz.de/10012466558
Can campaign promises change voter behavior, even where clientelism and vote buying are pervasive? We elicit multidimensional campaign promises from political candidates in consecutive mayoral elections in the Philippines. Voters who are randomly informed about these promises rationally update...
Persistent link: https://www.econbiz.de/10012452937
Does information about rampant political corruption increase electoral participation and the support for challenger … parties? Democratic theory assumes that offering more information to voters will enhance electoral accountability. However, if … copious corruption not only decreases incumbent support in local elections in Mexico, but also decreases voter turnout …
Persistent link: https://www.econbiz.de/10012460978