In this paper we investigate some of the ways in which short-term variations in the magnitude of political instability can impact on macroeconomic performance, taking the example of Israel since 1987. Several indicators of political instability are found to have a significant impact on aggregate...

Using a theoretical framework in which voters' choices are the result of utility maximisation decisions, and in which the variation of utility functions across individuals is partly deterministic (depending on their socio-economic characteristics) and partly stochastic, we estimate...

Domestic savings are an important prerequisite for capital formation and growth. In this paper we analyze a new channel through which institutions influence aggregate savings and economic development. Whereas research in the field of savings decisions concentrates largely on the level of the...

The history of monetary policy is characterised by crisis and reform. The paper is dedicated to an explanation of what makes monetary reforms successful. A cross-sectional econometric analysis is chosen to deal with this problem. It is based on a standard macroeconomic model of commitment and...