Government enterprises are vulnerable to political intervention and influence of various interest groups. The theoretical literature emphasizes the role multiple and conflicting goals that distorts incentives and accountability. We offer empirical evidence of the importance of the political...

The literature on intergenerational conflict and public budgets has shown that the demands of the elderly may crowd out educational spending. We extend this literature to take into account altruism within the family where individuals care about the welfare of family members. The conflicting...