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Households "sort" across neighborhoods according to their wealth and their preferences for public goods, social characteristics, and commuting opportunities. The aggregation of these individual choices in markets and in other institutions influences the supply of amenities and local public...
Persistent link: https://www.econbiz.de/10013138319
We revisit the classic problem of tax competition in the context of federal nations, and derive a positive theory of …
Persistent link: https://www.econbiz.de/10012765361
We study the competitive equilibrium of a market for votes where voters can trade votes for a numeraire before making a decision via majority rule. The choice is binary and the number of supporters of either alternative is known. We identify a sufficient condition guaranteeing the existence of...
Persistent link: https://www.econbiz.de/10013097274
Many countries, especially developing ones, follow procyclical fiscal polices, namely spending goes up (taxes go down) in booms and spending goes down (taxes go up) in recessions. We provide an explanation for this suboptimal fiscal policy based upon political distortions and incentives for...
Persistent link: https://www.econbiz.de/10013240582
This paper shows that the level of deforestation in Indonesia is positively related to the degree of ethnic fractionalization at the district level. To identify a casual relation we exploit the exogenous timing of variations in the level of ethnic heterogeneity due to the creation of new...
Persistent link: https://www.econbiz.de/10013047014
This study examines how the economic effects of elections in rural China depend on voter heterogeneity, for which we proxy with religious fractionalization. We first document religious composition and the introduction of village-level elections for a nearly nationally representative sample of...
Persistent link: https://www.econbiz.de/10013089285
Does information about rampant political corruption increase electoral participation and the support for challenger … parties? Democratic theory assumes that offering more information to voters will enhance electoral accountability. However, if … copious corruption not only decreases incumbent support in local elections in Mexico, but also decreases voter turnout …
Persistent link: https://www.econbiz.de/10013117216
Evidence on the relationship between political contributions and legislators' voting behavior is marred by concerns about endogeneity in the estimation process. Using a legislator's offspring sex mix as an exogenous variable, we employ a two-stage least squares estimation procedure to predict...
Persistent link: https://www.econbiz.de/10012759374
Indonesia has a tradition of corruption among local officials who harass and collect bribes from firms. Corruption … corruption and whether specific local politics, over and above the effects of local culture, affect corruption. We have a firm … responsibilities to local democratically elected governments. We have a second data set for 2004 on corruption at the end of the first …
Persistent link: https://www.econbiz.de/10013217237
corruption, which is more widespread in poor countries, reduces more the electoral appeal of capitalism than that of socialism …. The empirical pattern of beliefs within countries is consistent with this explanation: people who perceive corruption to … government in economic matters). Finally, we present a model explaining the corruption-left connection. It exploits the fact that …
Persistent link: https://www.econbiz.de/10012751901