Recent experience with disasters and terrorist attacks in the US indicates that state and local governments rely on the federal sector for support after disasters occur. But these same governments invest in infrastructure designed to reduce vulnerability to natural and man-made hazards. We show...

In this paper we propose an original model of competition for effective political power between majority and opposition coalitions. The model indicates that the electoral margin of the majority and the fragmentation of both coalitions are key variables that determine their effective political...

This paper examines the impact of three host country government policies (taxation, good governance, and infrastructure) on the host’s FDI stock. We focus on whether the impact of these factors differs depending on the level of development of the host country. The regression results indicate...

The main thesis of this paper is that in setting budget and regional development policies, public officials at the regional and central government levels must internalize that businesses are quite unlikely to be willing to pay taxes that are not matched by their desired level and quality of...

This paper attempts to broaden the existing empirical literature on foreign direct investment by incorporating government expenditures (both investment in infrastructure and consumption) as well as tax, classical location factors, institutional factors that may hinder business investment (such...