The Paper studies the relative merits of direct and representative legislation in a setting where voters are uncertain both with respect to the likely consequences of different policies and with respect to the political preferences of their fellow citizens. Under representative legislation, the...

This paper analyzes a recent ballot in which two virtually identical popular initiatives, both demanding a decrease in the legal age of retirement in Switzerland, led to differences in approval rates of nearly seven percentage points. Based on this unique natural experiment, the existence of...

This paper uses a three-factor (capital, low- and high-skill labour), two-household (low- and high-skill individuals), two-sector trade model to analyse the determinants of voter attitudes towards immigration under direct democracy and identify factors that would be coherent with both the...

Determinants of national policies towards immigration are analysed in the context of an economy open to international trade. Arguments for the existence of an ‘immigration surplus’ are reviewed and followed by an interpretative survey of the principal contributions of the political economy...

The issue of the free movement of persons occupies center stage in the negotiations on EU enlargement. Opinion polls and household surveys reveal that a majority of EU citizens are fearful of the consequences of the free movement of persons. Influenced by these surveys, the EU Commission and...

Inspired by the current debate over the future of the monetary union in Europe, this paper provides a simple model for the determination of the conditions of survival of the common good, which requires the creation of an effective fiscal union. We highlight the importance of institutional design...

The optimal degree of decentralization depends on the importance of inter-state externalities of local policies. We show that inter-state externalities are determined by spatial distribution of interest groups within the country. Interest groups who have multi-state scope internalize inter-state...

The paper studies a federal system where a region provides non-contractible essential inputs for the successful implementation of a local public policy project with spill-overs, and where bargaining between different levels of government may ensure efficient decision making ex post. We ask...

The paper presents a positive model of communication in federal legislatures to study the incentives of members to engage in a meaningful exchange of information, and how this shapes policy outcomes. Depending on the type of policy under consideration, communication between delegates generally...

The paper studies the effect of additional government revenues on political corruption and on the quality of politicians, both with theory and data. The theory is based on a version of the career concerns model of political agency with endogenous entry of political candidates. The evidence...