To study whether current spending levels and public knowledge of them contribute to transatlantic differences in policy preferences, we implement parallel survey experiments in Germany and the United States. In both countries, support for increased education spending and teacher salaries falls...

This paper formulates a general theory of how political unrest influences public policy. Political unrest is motivated by emotions. Individuals engage in protests if they are aggrieved and feel that they have been treated unfairly. This reaction is predictable because individuals have a...

This article investigates the effect of natural resources on whether ethno-political groups choose to pursue their goals with non-violent as compared to violent means, distinguishing terrorism from insurgencies. It is hypothesized that whether or not the extraction of fossil fuels sparks...

We document that trust in public institutions — and particularly trust in banks, business and government — has declined over recent years. U.S. time series evidence suggests that this partly reflects the pro-cyclical nature of trust in institutions. Cross-country comparisons reveal a clear...

This paper analyses the effect of information disseminated by the Internet on voting behavior. We address endogeneity in Internet availability by exploiting regional and technological peculiarities of the preexisting voice telephony network that hinder the roll-out of fixed-line broadband...

We construct a Hotelling-type model of two media providers, each of whom can issue fake and/or real news and each of whom can invest in the debunking of their rival's fake news. The model assumes that consumers have an innate preference for one provider or the other and value real news. However,...

This study uses an original state-level data set to investigate whether press coverage on trials for tax evasion by celebrities affects the likelihood that other tax payers participate in Germany’s tax amnesty program. To identify the causal effect, we use exogenous variation in the reporting,...

Many political commentators diagnose an increasing polarization of the U.S. electorate into two opposing camps. However, in standard spatial voting models, changes in the political preference distribution are irrelevant as long as the position of the median voter does not change. We show that...