Abstract Mainstream economists are reluctant to integrate features of bounded rationality into their behavioural assumptions. However, particularly in the field of economic policy the scope for limited rationality is given, since voters lack incentives for rational reasoning concerning their...

Abstract In his contribution Carsten Hefeker points out that most of the official arguments concerning the necessity of the Stability and Growth Pact are not convincing. Nevertheless, a mechanism that credibly avoids excessive debts and deficits is needed in most member states. It would be more...

Abstract Immediate effects of institutional reforms on growth and employment are highly important for political agents who frequently have short time horizons. Positive effects of expectations are a suitable transmission channel for a fast success of economic reforms. We analyse whether economic...

Abstract This article analyzes both, the reform needs and reform obstacles of EU cohesion spending. Although the empirical evidence is unable to substantiate an European added value, structural funds continue to absorb an increasing amount of resources. The analysis reveals several shortcomings...