A framework which allows for the joint testing of the adaptive and rational expectations hypotheses is presented. We assume joint normality of expectations, realizations and variables in the information set, allowing for parsimonious interpretation of the data; conditional first moments are...

Do minorities fare worse under direct democracy than under representative democracy? We provide new evidence by studying naturalization requests of immigrants in Switzerland that were typically decided with referendums in each municipality. Using panel data from about $1,400$ municipalities for...