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entrepreneurs to support the government and to exert effort in its stabilization. In return, politically connected firms get access … to profitable markets and are exempted from the regime's extortion. We show that such a gift exchange between government …
Persistent link: https://www.econbiz.de/10013317003
This paper studies how political fragmentation affects government stability. We show that each additional party with … representation in Parliament increases the probability that the incumbent government is unseated by 4 percentage points. Governments … with more resources at their disposal for bargaining are less likely to be replaced. When they are, new government leaders …
Persistent link: https://www.econbiz.de/10012837474
different measures of trust in government as well as including various controls, such as precautionary behaviors, first …
Persistent link: https://www.econbiz.de/10012832197
the most suffered the biggest loss in confidence in institutions, particularly in trust in government and the financial …We document that trust in public institutions - and particularly trust in banks, business and government - has declined … sector. Finally, analysis of several repeated cross-sections of confidence within U.S. states yields similar qualitative …
Persistent link: https://www.econbiz.de/10010274853
We analyze the effects of optimism and overconfidence when the manager’s compensation package includes severance pay and the CEO has bargaining power. We find that optimism does not affect incentive pay but increases severance pay with a negative effect on profit. Overconfidence, on the...
Persistent link: https://www.econbiz.de/10014082159
Many empirical studies have been conducted to test the Slippery Slope Framework (SSF) assumptions. Yet, only a few studies focus their attention on tax compliance factors associated with trust and power. Therefore, this study is dedicated to fully exploring these factors. The results show that...
Persistent link: https://www.econbiz.de/10012892090
We present a theory linking political and social trust to explain trust erosion in modern societies. Individuals … heterogeneity has two important effects on trust. First, disappointment with the policy rule enacted by the government breeds … institutional distrust. Individuals that are more worried blame the government because the rule is too lenient. The less worried …
Persistent link: https://www.econbiz.de/10014348046
People who anticipate the introduction of a policy can adapt their behavior, perhaps in ways that make the policy ineffective and exacerbate the problem to be addressed. This paper develops a political economy model to study strategic behavior related to the introduction of congestion policies,...
Persistent link: https://www.econbiz.de/10013250739
I develop a political economy theory of dynamic fiscal competition via public spending and debt. With internationally …
Persistent link: https://www.econbiz.de/10012891564
organizations. We test this theory empirically by examining how the United States uses bilateral aid and IMF loans to buy other …
Persistent link: https://www.econbiz.de/10012892255