Traditionally, the demand for public expenditures has been estimated using as explanatory variables the average values of per capita income, as well as other variables. The results of this approach are disappointing which is due to the lacking theoretical basis. The public choice model, on the...

Historical events are reflected in asset prices. In this paper, we analyse government bond prices of Germany and Austria traded on the Swiss bourse during WWII. Some war events that are generally considered crucial are clearly reflected in government bond prices. This holds, in particular, for...