I investigate how political uncertainty influences corporate investment decisions employinga unique panel dataset of German manufacturing firms. I use data on firms’ self-reportedinvestment realizations, plans and revisions. The firm-specific user cost of capital capturesthe current...

Using microdata that serve as the foundation of the ifo Business Climate Index, Germany’s leading business cycle indicator, I examine whether political uncertainty influences how firm owners perceive their present state and future development of business. I use state election months as...

We examine the extent to which government ideology has influenced monetary policy in OECD countries since the 1970s. In line with important changes in the global econ-omy and differences across countries, regression results yield heterogeneous infer-ences depending on the time period and the...

I examine the extent to which public sector outsourcing relates to public employment in OECD countries. I use new panel data on public sector outsourcing. The sample includes 26 countries over the period 2009-2015. Contrary to common expectations, the results do not suggest that public sector...

Perceived corruption in the public sector is measured by the reversed Transparency International's Perception of Corruption Index (CPI). The dataset includes around 100 democracies over the period 2012–2016, a sample for which the CPI is comparable across countries and over time. The results...

I investigate how the third wave of democracy influenced national defense spending by using a panel of 110 countries for the period 1972-2013. I use new SIPRI data on military expenditure, which has been extended to years prior to 1988 and four democracy measures to address differences among...

Politicians are expected to influence policy outcomes in a way to gain electoral advantage. There is, however, a pending question whether efficiency in the provision of public goods and services is affected by strategic behavior. I examine how electoral cycles influence local government...

Fiscal sustainability tests have largely ignored the institutional setting of fiscal policy making. Fiscal equalization schemes in federal states are one such institution. We examinewhether German state governments pursue sustainable fiscal policies taking intoaccount fiscal equalization...