Utilizing the Michigan Household Consumer survey’s rotating panel microstructure we can identify if individuals have adjusted their expectations towards inflation. This allows us to directly capture the updating behavior of individual consumers regarding their short- and long-run inflation...

We analyze the impact of political proximity to the United States on the occurrence and severity of terror. Employing panel data for 116 countries over the period 1975-2001 we find that countries voting in line with the U.S. are victims of more and deadlier attacks.

We examine the relationship between terrorism and electoral accountability. We find that terror has a robust positive effect on the probability that the incumbent government is replaced. The magnitude of the effect increases with the severity of the terrorist attack.