When politicians have lower discount factors than voters, democratic elections cannot sufficiently motivate politicians … to undertake long-term socially beneficial projects. When politicians can offer incentive contracts which become … politicians time preferences. In the non-commitment case, incentive contracts may need to include a golden parachute clause …

have a down-up characteristic. We show that voters cannot motivate politicians to invest in down-up policies by their … macroeconomic developments. Finally, we comment on practical issues when such contracts are used in election races …

When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social …. Reelection thresholds can be offered by politicians during campaigns and do not impair the liberal principle of free and …

When politicians are provided with insufficient incentives by the democratic election mechanism, we show that social …. Reelection thresholds can be offered by politicians during campaigns and do not impair the liberal principle of free and …

As the performance of long-term projects is not observable in the short run politicians may pander to public opinion … to stand for reelection. Reelection thresholds are offered by politicians during campaigns. We show that, on balance, the …