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 …

election outcomes based on municipal level data for Germany. We find that the party of the mayor can receive a bonus of 4 … the findings can be related to an incumbency externality effect and to the theory of voter preferences for divided …

dynamics and vice versa (electoral externalities). We quantify the extent of simultaneous electoral externalities between two … state of Berlin and the federal level in Germany. State voting intentions for the state and for the federal parliament are … vice versa. Externalities account for around 10% to 30% of variation at the other level of government. The effects differ …