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...

This study analyzes the efficiency of the road provision of the local governments of eastern German counties using data envelopment analysis. The provision of roads is a costly public service, which makes an efficiency analysis in this field an interesting subject. I enhance the previous...

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 how political uncertainty influences corporate investment decisions employing a unique panel dataset of German manufacturing firms. I use data on firms' self-reported investment realizations, plans and revisions. The firm-specific user cost of capital captures the 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 investigate a case of political favoritism. Some members of the Bavarian parliament hired relatives as office employees who were paid using taxpayers' money. The family scandal was a hot issue in the German media because of the upcoming state and federal elections. We examine whether being...

Using a panel of naturalizations in U.S. states from 1965 to 2012, we empirically analyze the impact of elections on naturalization policy. Our results indicate that naturalization policy is (partly) driven by national elections: there are more naturalizations in presidential election years and...

The political business cycle theories describe that election-motivated politicians manipulate economic policy-making. Election cycles occur in many fiscal variables, for example tax rates. I examine whether electoral motives influence communal fees in Germany. Fees have to be paid for the use of...

Since 2007 the German state governments have been allowed by a constitutional reform to set real estate transfer tax rates. We exploit this reform and investigate whether government ideology predicts the levels and increases in the real estate transfer tax rates. The results show that leftwing...