dynamics and vice versa (electoral externalities). We quantify the extent of simultaneous electoral externalities between two … vice versa. Externalities account for around 10% to 30% of variation at the other level of government. The effects differ … across parties. Electoral externalities are less pronounced for the conservative party, but increase in times of government …

externalities appear along the lifecycle. In a simple model, we show that it may be efficient to subsidize innovative firms in their … early stages or to protect mature firms from competition to appropriate these externalities. However, non …-benevolent politicians may not choose efficient policies. Real-world examples indicate that politicians tend to concentrate on externalities …