In January 2005 the German Supreme Court permitted the state governments to chargetuition fees. By exploiting the natural experiment, we examine how government ideologyinfluenced the introduction of tuition fees. The results show that rightwing governmentswere active in introducing tuition fees....

Principal-agent problems can arise when preferences of voters are not aligned with preferences of political representatives. Often the consequence of the political principalagentproblem is political catering to special interests. In this paper I provide examples of principal-agent problems...

We investigate empirically how party ideology influences size and scope of government as measured by the size of government, tax structure and labor market regulation. Our dataset comprises 49 US states over the 1993–2009 period. We employ the new data onthe ideological mapping of US...

Deutschland wurde bereits zweimal, 1966–1969 und 2005–2009, von einer großen Koalition regiert. Deskriptive Zeitreihenanalysen wirtschaftspolitischer Kennzahlen zeigen nicht auf, dass es unter diesen großen Koalitionen signifikante Kurswechsel in der Wirtschaftspolitik gab. Qualitative...

I investigate minority votes in the German Council of Economic Experts. The dataset contains information on the voting behavior of the council members over the period 1971–2011. The results show that the best predictor of minority voting is being nominated by the trade unions: a council member...

Using the recursive unit root test by Phillips et al. (2011) we show that the Target balances of the German Bundesbank have been explosive from the beginning of 2009 to the beginning of 2013. By implementing a full-allotment policy and reducing the required minimum quality of collaterals in...

A widespread concern is that labor market institutions erode in the course of globalization, which, in turn, decreases employment and wages. By using panel data and crosssectional data, I investigate the influence of globalization on labor market regulation. I use the indicators of labor market...

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...

We investigate a case of political favoritism. Some members of the Bavarian parliamenthired relatives as office employees who were paid using taxpayers’ money. The familyscandal was a hot issue in the German media because of the upcoming state and federalelections. We examine whether being...