Do voters place their trust in tried and tested leaders when uncertainty is high or do they prefer a new slate of … pandemic, a time of high uncertainty about the future course of events. Using local heterogeneity in Covid-19 outbreaks and … related school/daycare closures to proxy the degree of perceived uncertainty across Bavarian municipalities, we show with a …

-keynesian model where fiscal policy effectively reduces firms? market power. Stronger product market competition is shown to reduce … the marginal ability of governments to improve employment through public consumption. As competition crowds out fiscal …

We propose and test empirically a theory describing the endogenous formation and persistence of mega-states, using …