The weak rationality principle is not an empirical statement but a heuristic rule for how to proceed in social sciences. It is a necessary ingredient of any 'understanding' social science in the Weberian sense. In this paper, first this principle and its role in economic theorizing are...

In this paper, institutions are described which are designed to reach sustainability of public finances in the Swiss cantons. These are on the one hand direct popular rights, the fiscal referendum in particular, which allow citizens to express their fiscal preferences. These are on the other...

Relying on Allensbach and Infratest data, it is asked if there is a relation between the perception of the general economic situation and the voting intention. Modern time series techniques are employed: Box-Jenkins analysis and Granger causality tests. The test results as well as ex post...

Whenever the economic model of behavior is to be applied, the utility function has—at least somewhat—to be specified. Buchanan generally prefers to apply a rather narrow version. However, he acknowledges that it is hardly possible to explain actual behavior of individuals with such a...

Begünstigt das geplante Steuerabkommen zwischen Deutschland und der Schweiz Steuerhinterzieher und sollte besser nachverhandelt werden? In Ergänzung zu den Beiträgen im ifo Schnelldienst 18/2012 stellt Gebhard Kirchgässner, Universität St. Gallen, die Vor- und Nachteile des...

First the assumption of self-interest as applied in Economics is presented. Here we also discuss areas in which (many) people behave less self- but more other-regarding than traditional economic models assume. Then, greedy behaviour is considered as existing in the political and economic...

The introduction of an unconditional basic income has been discussed in Switzerland for many years. Germany, however, takes a sceptical view of this idea. The authors of this „Zeitgespräch“ express disparate opinions on how broadly the concept should be defined, but they agree on the motive...

After providing some examples of contradictory economic policy advice, we characterise different conceptions of policy advice. This is possible because, in many situations, neither economic theory nor empirical analyses provide unambiguous answers to policy questions. Thus, contradictory advice...

In 2000 the European Union adopted its motto, of “Unity in diversity”. But in fact, economic policy regimes differ among member states and the people are not willing to leave the current path or to vote for painful political actions. In the midst of the present crisis, Europe is at the...