We describe a theory of the collective choice of fiscal policy in dynamic economies that are subject to aggregate shocks. The theory incorporates realistically complex policy spaces, rational forward-looking agents, and a rich political decision process. We argue that it provides a tractable...

We study political activism by several interest groups with private signals. When their ideological distance to the policymaker is small, a "low-trust" regime prevails: agents frequently lobby even when it is unwarranted, taking advantage of the confirmation provided by others' activism;...