This paper presents a model of political competition, where voter decisions are affected by their ideological adherence to political parties. We derive a number of interesting results: First, we show that an equilibrium exists even though voting is fully deterministic. Second, although...

In this paper we present a political economy approach in order to explain the degree of financial openness for an economy. In the model, entrepreneurs, who may have good or bad projects, vote for policies, which are proposed by selfish politicians. Two political frictions (ideological adherence...

The Hirshleifer model of conflict is used to argue that without voluntary action to increase human security, the state may have extensive opportunities and incentives to increase the risk of conflict in the many poor countries where central governments provide local public goods. Metaphorically,...

In this paper we present a political economy approach in order to explain the degree of financial openness for an economy. In the model, entrepreneurs, who may have efficient or inefficient projects, vote for policies, which are proposed by selfish politicians. Two political frictions...

This paper presents a model of political competition, where voter decisions are affected by their ideological adherence to political parties. We derive a number of interesting results: First, we show that an equilibrium exists even though voting is fully deterministic. Second, corruption and...

Comparative corporate governance has captured the interest of economists and legal scholars during the past two decades. In view of intensified economic globalization, it has become apparent that the public corporation, one of the keystones of the modern market economy, has produced very...

Electoral quotas guaranteeing a threshold level of political representation for women and underprivileged socio-ethnic/religious minorities have been adopted in over 100 countries. This paper examines how the interaction of such quotas with political party structures affect minority welfare. We...

We provide evidence that managerial incentives to manipulate real activities can influence the effectiveness of fiscal policy. Increases in federal spending lead government-dependent firms to expand R&D investment whereas industry-peer firms contract. The net result is a reduction in...

This paper studies tax competition in an economic geography model that allows for agglomeration economies with trade costs and heterogeneous firms. We find that the Nash equilibrium involves the large country charging a higher tax than the small nation, with this rate being too low from a social...

This paper analyses business preferences towards the development of private pension funds. Existing studies about business involvement in welfare state reform equate capital with employers and focus on the socio-economic determinants of their preferences. In contrast, this paper also analyses...